Provide an example for using Bayes Theorem in a workplace setting, as described in the article Better Living through Statistics. Does statistics also have uses in everyday life?

"Youve probably heard of Nate Silver. Hes the King of Quants, and his bookThe Signal and the Noiseis an excellent discussion of some of the problems we have with prediction. Youve probably never heard of the Reverend Thomas Bayes, who is responsible for a theorem (called Bayes Theorem) that helps us understand how we can update our estimates of the probabilities of different events given new pieces of information.

Its still pretty counter-intuitive. Fortunately, the people atNowsourcing, Inc, who have provided content for this space before,were kind enough to produce the infographic below that introduces Bayes Theorem with a contrived example involving baseball: whats a good estimate of the probability that the Yankees will win game #101 if they have won 72 of their first 100 games and Sportscaster Bobwho is correct 55% of the time when he predicts a Yankees victoryhas predicted that they will win?

Since the Yankees have won 72 of 100 games, a good estimate of the probability that they will win their 101st game would be 72%. Now, we introduce some information: since Bob is right just over half the time when he predicts a Yankees victory, it will nudge our estimate of the probability of a Yankees victory up just a little bit (if Sportscaster Bob were right less than half the time, it would nudge our estimate of the probability downward).

Our estimate of the probability changes as we add more information. Is it a night game? Who are the Yankees playing? Who is pitching? Did it rain last night? Is a key player injured? And so on: the more accurate information we add, the better our estimates will be. The applications are numerous and important: while Bayesian reasoning can help us understand baseball (except for the Yankees hypothetical 72-28 record in this example), it also helps us understand far more important things like medical diagnostics. And elections. And all sorts of other interesting things."