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Introduce Bayesian analysis

Introduce Bayesian analysis - Microsoft Excel Tutorial

From the course: Learning Excel: Data Analysis

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Introduce Bayesian analysis

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- [Instructor] Previously, in this course, I have discussed what are known as descriptive statistics. Descriptive statistics, as the name implies, provide facts about your data. Those can include measures such as medians, means, variance, and standard deviation. You can then use these facts about your data to make estimates at a known confidence level. For example, you might think that most of your customers live within a 25 mile radius, plus or minus three or four miles, and you might be wondering, "What else is there?" It turns out there's a lot more. Let me give you an example. Let's assume for the sake of argument that you might have the flu and your test for the flu has come back positive. The test has the following characteristics, and all of these will be important for our analysis: It returns the correct result 85% of the time. It identifies healthy individuals as having the flu 10% of the time. So in other words, if you do have the flu, you will get a positive result 85% of…

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