Bayesian Statistics: Prior, Posterior, Credible Intervals

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bayesian inference

Core Idea

Bayesian updating: posterior ∝ likelihood × prior. Posterior distribution of θ summarizes belief after seeing data. Credible intervals [a,b] satisfy P(θ∈[a,b]|data)=0.95, directly answering 'where is θ?' Unlike frequentist CIs, these are probability statements about θ.

Explainer

From Bayes' theorem, you know that P(A|B) = P(B|A)·P(A)/P(B). Bayesian statistics is what happens when A is a hypothesis about a parameter θ and B is the data you observed. Before seeing data, you have a prior distribution π(θ) that encodes your beliefs (or lack thereof) about θ. It is a full probability distribution — not just a point estimate, but a spread of plausibility over all possible values of θ. After observing data x, you update this belief using the data's likelihood L(θ; x) = f(x|θ), the probability of seeing your data if θ were the true value.

The update formula is the fundamental equation: posterior ∝ likelihood × prior, written π(θ|x) ∝ f(x|θ) · π(θ). The proportionality hides the normalizing constant (the marginal likelihood ∫ f(x|θ) π(θ) dθ), which makes the posterior integrate to 1 but plays no role in inference about θ. Intuitively: the prior says "here is where I thought θ lived before"; the likelihood says "here are the values of θ that make my data probable"; the posterior says "here is where I believe θ lives now, combining both signals." Regions where the prior is high and the likelihood is high become regions where the posterior is especially concentrated.

The posterior distribution is the complete answer to a Bayesian inference problem — not a number, but a distribution. From it you can extract any summary you want. The posterior mean E[θ|x] and posterior mode (MAP estimate) are both point summaries. A credible interval [a, b] with coverage 1 − α is any interval satisfying P(θ ∈ [a, b] | x) = 1 − α — a direct probability statement about where θ lies. This is what people often *want* from a confidence interval but cannot get: a 95% credible interval literally means "given my prior and this data, I am 95% sure θ is in [a, b]." A frequentist confidence interval means something more convoluted (it describes a procedure that covers the true θ 95% of the time across hypothetical repetitions), not a probability about this particular θ.

The practical power of the Bayesian framework is most visible when you have genuine prior information — domain knowledge about plausible parameter ranges, previous experiments, or regularizing constraints — and when you need to propagate uncertainty rather than just report a point estimate. The prior is often criticized as subjective, but this objection weakens as data accumulates: with sufficient data, the likelihood dominates the prior, and posteriors from different reasonable priors converge. The Bayesian framework also naturally handles hierarchical models (priors on priors), sequential updating (the posterior from one study becomes the prior for the next), and prediction via the posterior predictive distribution p(x̃|x) = ∫ f(x̃|θ) π(θ|x) dθ — integrating over all uncertainty in θ rather than plugging in a point estimate.

Practice Questions 5 questions

Prerequisite Chain

Counting to 10Counting to 20Understanding ZeroThe Number ZeroCounting to FiveOne-to-One CorrespondenceCombining Small Groups Within 5Addition Within 10Addition Within 20Two-Digit Addition Without RegroupingTwo-Digit Addition with RegroupingAddition Within 100Repeated Addition as MultiplicationMultiplication Facts Within 100Division as Equal SharingDivision as Grouping (Measurement Division)Division: Grouping (Repeated Subtraction) ModelDivision: Fair Sharing ModelDivision as Equal SharingDivision as GroupingBasic Division FactsDivision Facts Within 100Two-Digit by One-Digit DivisionDivision with RemaindersRemainders and Quotients in DivisionDivision Word ProblemsIntroduction to Long DivisionFactors and MultiplesPrime and Composite NumbersEquivalent FractionsRelating Fractions and DecimalsDecimal Place ValueReading and Writing DecimalsComparing and Ordering DecimalsAdding and Subtracting DecimalsMultiplying DecimalsDividing DecimalsDividing FractionsMixed Number ArithmeticOrder of OperationsInteger Order of OperationsVariable ExpressionsCombining Like TermsOne-Step EquationsTwo-Step EquationsSolving Multi-Step EquationsEquations with Variables on Both SidesAngle Pairs: Complementary, Supplementary, and VerticalParallel Lines and TransversalsCorresponding AnglesAlternate Interior AnglesTriangle Angle Sum TheoremExterior Angle TheoremTriangle Inequality TheoremSimilar Triangles: AA SimilaritySimilar Triangles: SSS and SAS SimilarityProportions in Similar TrianglesRight Triangle Trigonometry IntroductionTrigonometric Ratios ReviewRadian MeasureConverting Between Degrees and RadiansThe Unit CircleGraphing Sine and CosineGraphing Tangent and Reciprocal Trigonometric FunctionsDerivatives of Trigonometric FunctionsAntiderivativesIndefinite IntegralsBasic Integration RulesRiemann SumsDefinite Integral DefinitionProbability Density Functions and Continuous DistributionsBayesian Statistics: Prior, Posterior, Credible Intervals

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