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What is Bayes' Theorem?
Bayes' theorem tells us how to update our beliefs when we observe new evidence. The formula is:
Where H is our hypothesis (die is loaded) and E is the evidence (three 6s).
The key idea:
We start with a prior belief (how likely we think the die is loaded before testing), observe evidence, then calculate a posterior belief (how likely after seeing the evidence).
You suspect a die might be loaded (biased toward 6). You roll it three times and get three 6s in a row. What is the probability that the die is actually loaded?
Before seeing any evidence, assume 10% of dice are loaded:
For rolling a 6:
If the die is loaded (P(6) = 0.5), getting three 6s:
If the die is fair (P(6) = 1/6), getting three 6s:
Using the law of total probability:
After observing three 6s in a row, the probability that the die is loaded increased from 10% to approximately 75%.