Concept
Conditional Probability
Conditional probability updates the sample space after new information is known.
Page Contract
- Role
- Concept
- Level
- Core
- Time
- Reference
- Freshness
- Stable
Search Intent
conditional probability
Formula
Conditional probability means the denominator is the new sample space after B is known.
Worked Example
If 4% of policies have a claim and 25% of claim policies are large, then P(large claim)=0.04 x 0.25=0.01, or 1%.
ML Connection
Classification models are often evaluated through conditional probabilities: the chance an event occurs given observed features.