The La Theorem Is a Special Case of the

Bayes Theorem can be expressed in a variety of forms that are useful for different purposes. There is evidence that the binomial theorem for cubes was known by the 6th century AD in India.


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Binomial coefficients as combinatorial quantities expressing the number of ways of selecting.

. Special Forms of Bayes Theorem. Special cases of the binomial theorem were known since at least the 4th century BC when Greek mathematician Euclid mentioned the special case of the binomial theorem for exponent 2. This special case is sufficient for risk-neutral pricing in the Black-Scholes model.

This is the factor PRH E P E HPH by which Hs unconditional probability must be multiplied to get its probability. One version employs what Rudolf Carnap called the relevance quotient or probability ratio Carnap 1962 466. We state the theorem first for the special case when the underlying stochastic process is a Wiener process.


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