The Ultimate Guide to Bayesian Statistics

Bayesian statistics is a statistical theory based on the Bayesian interpretation of probability. To understand Bayesian Statistics, we need to first understand conditional probability and Bayes' theorem. Conditional probability measures the probability of an event occurring based on the fact that another event has already occurred. Just as the formula below shows, event A occurs given that event B occurred, is the division of the joint probability of event A and B and the probability of event B occurring. There are two notes regarding this formula.