How does Bayes' theorem assist in decision making under uncertainty?
- It eliminates all uncertainty
- It proves the correctness of an assumption
- It provides a method for incorporating new data to update our beliefs
- It reduces the data needed for decision making
Bayes' Theorem provides a mathematical framework for updating probabilities, which can be interpreted as degrees of belief, based on the evidence at hand. Thus, it assists in decision making under uncertainty by allowing for the incorporation of new information.
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