by Albert Major
The Base Rate Fallacy is when people focus on specific case information while ignoring the underlying statistical probability of something happening in the general population (like believing a witness who is 80% accurate without considering that there are far more green cabs than blue ones on the road).
Bayes' Theorem is a mathematical formula that helps calculate the probability of a hypothesis being true by updating our initial beliefs with new evidence (like adjusting how likely we think all ravens are black each time we see another black raven).
Formula Components:
P(A|B) = P(B|A) × P(A) / P(B)
Applications: