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      Question

      What is 'Bayes'

      Theorem'?
      A A theorem for calculating the average of probability distributions Correct Answer Incorrect Answer
      B A formula for calculating portfolio risk given individual asset correlations Correct Answer Incorrect Answer
      C A statistical method for calculating compound interest over multiple periods Correct Answer Incorrect Answer
      D A theorem proving all events have equal probability without prior information Correct Answer Incorrect Answer
      E A theorem for calculating the probability of an event given prior knowledge of related conditions Correct Answer Incorrect Answer

      Solution

      Bayes' Theorem: P(A|B) = [P(B|A) × P(A)] / P(B). Where P(A) = prior probability, P(A|B) = posterior probability (updated belief after observing B). Naive Bayes Classifier applies this to ML (assumes feature independence). Naive Bayes classifiers are fast, interpretable, and effective for text classification, loan application fraud detection and email categorization.

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