Bayesian analysis is a statistical approach that incorporates prior knowledge or beliefs, along with new data, to update probabilities and make inferences. Instead of treating probabilities as fixed, Bayesian methods treat them as dynamic and revisable with evidence.
For example, if a doctor believes there’s a 5% chance a patient has a rare disease (based on prior information), and then a highly accurate test comes back positive, Bayesian analysis allows the doctor to update the probability and conclude that the patient’s chance of having the disease is now much higher.
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