The Application of Bayesian Theorem

Abstract

There are huge amount of mathematics model can be used to make decisions and make predictions, one of a useful model is the Bayesian model. It is built based on Bayesian theorem. In this article, the advantages and disadvantages of this theorem are discussed. Then some main applications of Bayesian theorem will be introduced and illustrated with some specific cases. Specifically, applications of Bayesian theorem in fields such as disease diagnosis, making risk decisions and data diagnosis are found by us. Bayesian theorem is worth to be used in disease diagnosis based on the positive results which calculated by scholars and making risk decisions since it increases the confidence of investment for investors. To be conclude, Bayesian theorem is a effective model to be used in making decisions and predictions, and this model definitely contributes a lot to the develop of the whole society. The study of the application for Bayesian theorem in different settings contributes to the development of relevant theories.