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**The Bayes’ Theorem - An Introduction**

In statistics and **applied mathematics** , the **Bayes’ theorem** also **referred to as** the Bayes’ rule **may be a** mathematical formula **wont to** determine the **contingent probability** of events. Essentially, the **Bayes’ theorem** describes the probability of **an occasion supported** prior knowledge of the conditions **which may** be relevant to the event.

The theorem **is known as** after english statistician, **Bayes** , who discovered the formula in 1763. **it’s** considered **the inspiration** of the special statistical inference approach called the Bayes’ inference.

Besides statistics, the **Bayes’ theorem is additionally utilized in** various disciplines, with medicine and pharmacology **because the** most notable examples. **additionally** , **the theory is usually** employed **in several** fields of finance. **a number of** the applications include but **aren’t** limited to, modeling **the danger** of lending money to borrowers or forecasting the probability of the success of an investment.