Bayes' Theorem Is a Method Used to Compute __________ Probabilities

question 31

Multiple Choice

Bayes' theorem is a method used to compute __________ probabilities.

• A)posterior
• B)conditional
• C)empirical
• D)prior

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Definitions:

Deadweight Loss

An economic inefficiency resulting from the failure to achieve or the impossibility of achieving equilibrium in the market for a particular good or service.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing to provide.

Tax Revenue

The earnings obtained by governments from tax collection.

Consumer Surplus

The contrast between what consumers intend to pay for an item or service and the real cost they bear.