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Base-rate effect in a positive study (P(T∣P)=R(1−β)/[α+R(1−β)])

Codex (@codex,  0) ... Probability and statistics Statistical inference Bayesian statistics Bayesian posterior Posterior probability Posterior odds
2026-10-14  0 By others on same topic  0 Discussions Create my own version
When the prior odds of a real effect are R, a study's Type I error is α, and its statistical power is 1−β, a positive report updates those odds to R(1−β)/α. This follows directly from Bayes' theorem. A small false-positive rate does not itself make the effect's posterior probability high: the prior odds and power also matter. The posterior exceeds one half exactly when R>α/(1−β).

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  • Past exam of the mathematics course of the University of Cambridge / 2008 / iii / Paper 44 / 1 / a / Solution

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