If you are not following the conversation series the previous post, please referred the below link.
Part-1 Link:
Part-2 Link:
Bayes’ Theorem Part-3 – Explanation
Image Credit: (Data Science. Bayes theorem - Blog | luminousmen)
Above image we’ve two overlapped events A and B. It can be, for instance A — i buy wet today, B — it’ll be rainy today. In a method or another, many events are associated with one another , as in our example. Let’s calculate the probability of A as long as B has already happened.
Since B went on , the part which now matters for A is that the shaded part which is interestingly A ∩ B. So, the probability of A given B seems to be:
Therefore, we can write the formula for event B given A has already occurred by:
OR
Now, the second equation can be rewritten as:
Where:
- P(A|B) — the probability of event A occurring, given event B has occurred.
- P(B|A) — the probability of event B occurring, given event A has occurred.
- P(A) — the probability of event A.
- P(B) — the probability of event B.