The Application of Bayesian Theorem

Abstract

Bayesian theorem is an outstanding theorem in probability theory. With the development of technology and the progress of society, the advantages of Bayesian theorem gradually show, which let us better utilize existing resources to make more accurate judgments. Further understanding of the application of Bayesian theorem in different fields will help us to clarify the future development trend and deficiency of this theorem. Numerous studies have explored this theorem's advantages and developments in several heated areas. In this study, the link between Bayesian theorem and three main fields, which are finance, computer science, and medicine, is carefully studied. In finance, the distribution, , aiding investors to make decisions in terms of both prior information and sample information are studied, as its mean   balances two kinds of information. In computer science, an algorithm based on the Naive Bayes model is used to effectively filter spam, and TAN. Besides, one of naive Bayes model’s improvements is also discussed and compared. In medicine, the theorem upgrades the accuracy of diagnosis. In addition, a practical example is adopted to prove its function in breast lump disease. With abundant investigations and extensive applications, Bayesian theorem will be deeply rooted in human lives in various fields and greatly facilitates further research in these fields soon.