In Our Previous Example, the Doctor Had Already Calculated the Probability

question 13

Multiple Choice

In our previous example, the doctor had already calculated the probability of patient life expectancy based on national cancer data. In a Bayesian approach, what sort of probability is this?

• A) Positive probability
• B) Posterior probability
• C) Prior probability
• D) Inferior probability

---

Definitions:

Sugar Prices

The cost per unit of sugar, which can fluctuate based on supply, demand, and other market conditions.

Regressive Income Tax

A taxation method where the tax rate falls as the amount being taxed grows.

Opportunity Cost

The cost of foregone alternatives, representing the benefits one could have received by taking a different decision.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one product for another.