Point out the relevance of the Bayes' theorem


Bayes' theorem provides guidance on how to revise prior probabilities as new information
is acquired. The degree of revision depends on both the probability of the information that was found and on what is known about the probabilities of the data.

Economics

You might also like to view...

Negative externalities arising from the production of a good

A. cause an increase in the demand for the good. B. cause a decrease in the demand for the good. C. impose costs on third parties. D. bring private costs into equality with social costs.

Economics

Which of the following will not generally be true of a monopolistic competitor operating in the long run? a. It will be earning normal profits

b. Its marginal revenue = marginal cost. c. Its average total cost will be minimized. d. Its price will be greater than its marginal cost.

Economics

From 1998 to 2010, the cost of building a nuclear plant increased from $3 billion to $10 billion. If the marginal cost of producing electricity stays the same, then the average variable cost of producing electricity ________ while the average total cost of producing electricity ________.

A. stays the same; increases B. decreases; stays the same C. increases; stays the same D. decreases; increases

Economics

Transfer payments include all of the following except

A. Social Security benefits for retirees. B. A church-run thrift store for the poor. C. Federal crop assistance for farmers. D. Government-subsidized loans for students.

Economics