added Bayes stuff
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@@ -1270,9 +1270,9 @@ Let us try to illustrate Bayes' theorem through an example.
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!split
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===== Example of Usage of Bayes' theorem =====
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Let us suppose that you are undergoing a series of mammography scan in
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Let us suppose that you are undergoing a series of mammography scans in
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order to rule out possible breast cancer cases. We define the
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sensitivity for a positive event by the variable $X$ (it takes binary
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sensitivity for a positive event by the variable $X$. It takes binary
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values with $X=1$ representing a positive event and $X=0$ being a
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negative event. We reserve $Y$ as a classification parameter for
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either a negative or a postive breast cancer confirmation.
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@@ -1287,7 +1287,7 @@ p(X=1\vert Y=1) =0.8.
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\]
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!et
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This obviously sounds scaring since many would conclude that if the test is positive, there is a likelihood of $80\%$ for having cancer.
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This obviously sounds scary since many would conclude that if the test is positive, there is a likelihood of $80\%$ for having cancer.
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It is however not correct, as the following Bayesian analysis shows.
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!split
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@@ -1318,6 +1318,19 @@ p(Y=1\vert X=1)=\frac{p(X=1\vert Y=1)p(Y=1)}{p(X=1\vert Y=1)p(Y=1)+p(X=1\vert Y=
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!et
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That is, in case of a positive test, there is only a $3\%$ chance of having cancer!
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!split
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===== Bayes' Theorem and Ridge and Lasso Regression =====
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Hitherto we have discussed Ridge and Lasso regression in terms of a
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linear analysis. This may to many of you feel rather technical and
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perhaps not that intuitive. The question is whether we can develop a
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more intuitive way of understanding what Ridge and Lasso express.
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Before we proceed let us perform a Ridge and OLS analysis of a polynomial fit.
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!split
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===== Why resampling methods =====
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