Join Eddie Davila for an in-depth discussion in this video Bayes theorem, part of Statistics Foundations: Probability.
- Millionaires. … Who are they, and how did they get their money? … There's all sorts of data on this topic, … but let's say you were given this set of data. … Here's the amount of education millionaires … in a certain country achieved. … 20% had graduate degrees, 60% undergraduate degrees. … 15% had only a high school diploma. … And 5% did not even complete high school. … Suppose for this same country, … we also know how many inherited their wealth … versus earning it. … Here's the data. … 40% of millionaires … that are high school dropouts inherited their wealth. … 20% of millionaires that had either a high school diploma … or an undergraduate degree inherited their wealth. … And only 15% of millionaires … with graduate degrees inherited their wealth. … What's the probability that a millionaire … did not complete high school given … that they earned their wealth? … Well, let's set up a tree. … Our first set of branches establishes … the level of education. … Our second set of branches then break up …
Eddie explains that probability is used to make decisions about future outcomes and to understand past outcomes. He covers permutations, combinations, and percentiles, and goes into how to describe and calculate them. Eddie introduces multiple event probabilities and discusses when to add and subtract probabilities. He describes probability trees, Bayes’ Theorem, binomials, and so much more. You can learn to understand your data, prove theories, and save valuable resources—all by understanding the numbers.