Applications of Prior Probability

Various application of Prior Probability includes:

• Medical Diagnosis: Prior probabilities are used in medical diagnosis in order to determine the likelihood of the disease before testing.
• Spam Filtering: Prior probabilities are used in email filtering to classify an email as a spam or not spam based on the pervious historical data.
• Financial Forecasting: Investors consider the prior probability in order to assess the risk of the investments before considering market trends and data.
• Machine Learning: In the field of Machine Learning, prior probabilities are integrated with various algorithms in order to improve model performance and its accuracy.

Understanding Prior probability and its study is important as it helps us to combine the new information with the past data to make better decisions and improve accuracy. Prior probability forms as a foundation of Bayesian Theorem which allows us to integrate the new data with the old data to improve the estimation accuracy.

In this article, we will take a deeper look into prior probability, its applications in various fields and some examples for understanding it better.