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BS-2 | BUSINESS STATISTICS-2 | UNIT-4 BAYES THEOREM | OU | SEMESTER-4 | ‎⁨‎⁨@shivanipallela⁩
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401 views0likes14:55shivanipallelaOriginal Release: 2026-06-07

Bayes' Theorem is used to calculate the posterior probability of an event given new evidence, by multiplying prior probabilities by conditional probabilities to find joint probabilities, then dividing each joint probability by the total joint probability. The process involves: (1) identifying the number of sources (machines, factories, companies), (2) converting percentages to decimals, (3) calculating joint probabilities (P(Ai ∩ B) = P(Ai) × P(B|Ai)), (4) summing all joint probabilities to find the total, and (5) dividing each joint probability by the total to obtain posterior probabilities. For example, in a factory with three machines producing 25%, 35%, and 40% of output with defect rates of 5%, 4%, and 2% respectively, the probability that a defective bolt came from machine P is 0.60, from machine Q is 0.38, and from machine R is 0.02.

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