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B) is the proportion of those with A out of those withB .
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This was formulated by Kolmogorov in his famous book from 1933. Kolmogorov underlines the importance of conditional probability by writing ‘I wish to call attention to … And especially the theory of conditional probabilities and conditional expectations …’ in the Preface. The Bayes theorem determines the posterior distribution from the prior distribution. Bayes theorem can be generalized to include improper prior distributions such as the uniform distribution on the real line.
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