Learning objectives: Describe Bayes’ theorem and apply this theorem in the calculation of conditional probabilities. Compare the Bayesian approach to the frequentist approach. Apply Bayes’ theorem to scenarios with more than two possible outcomes and calculate posterior probabilities...
I came across a example question from Schweser which I solved it below.
Because the question specified that the performance in one year is independent of performance in next year. The probability that an Excellent manager will outperform 3 years in a row is (70%)^3 = 34.3% . This is why I...
Learning outcomes: Apply Bayes’ theorem to scenarios with more than two possible outcomes.
Questions:
501.1. As a risk analyst, you are asked to look at Whitetech Corporation, which has issued both equity and bonds. The bonds can either be downgraded, be upgraded, or have no change in rating...
Learning outcome: Describe Bayes’ theorem and apply this theorem in the calculation of conditional probabilities. Compare the Bayesian approach to the frequentist approach.
Questions:
500.1. According to Miller, each of the following is true about Bayes' theorem and Bayesian analysis EXCEPT...
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.