Bayesian Statistics

Bayesian Epistemology

Bayesian epistemology is the philosophical program that models rational belief as probability and rational belief change as conditionalization, grounding the norms of inquiry in the axioms of probability theory.

P(H | E) = P(E | H) · P(H) / P(E)

Bayesian epistemology treats probability theory not merely as a branch of mathematics but as the logic of partial belief. Just as deductive logic prescribes how certain beliefs must relate to one another, Bayesian epistemology prescribes how uncertain beliefs must relate to one another and how they must evolve when evidence arrives. An agent's degrees of belief — or credences — should satisfy the probability axioms, and upon learning new evidence E, the agent should update by conditionalization: the new credence in any hypothesis H becomes the old conditional probability P(H | E).

This framework transforms epistemology from a qualitative discipline concerned with justification and knowledge into a quantitative science of rational opinion. Questions that once seemed intractable — how strong is this evidence? how should competing hypotheses be weighed? when is it rational to change one's mind? — receive precise, computable answers.

The Conditionalization Norm P_new(H) = P_old(H | E) = P_old(E | H) · P_old(H) / P_old(E)

Jeffrey Conditionalization (uncertain evidence) P_new(H) = P_old(H | E) · P_new(E) + P_old(H | ~E) · P_new(~E)

Historical Development

The roots of Bayesian epistemology extend back to the Reverend Thomas Bayes and Pierre-Simon Laplace, who used inverse probability to reason from effects to causes. But the explicit philosophical program emerged in the twentieth century through the work of Frank Ramsey, Bruno de Finetti, and L. J. Savage, who each independently argued that probability is best understood as rational degree of belief rather than objective frequency.

1926

Frank Ramsey's "Truth and Probability" argues that degrees of belief can be measured through betting behavior and must satisfy the probability axioms to be coherent.

1937

Bruno de Finetti publishes "La prevision," proving his representation theorem and establishing subjective probability on rigorous foundations. He declares: "Probability does not exist" as an objective feature of the world.

1954

L. J. Savage's The Foundations of Statistics provides a complete axiomatic foundation for subjective expected utility, unifying probability and decision theory.

1970s

Philosophers including Richard Jeffrey, Paul Horwich, and Brian Skyrms develop Bayesian epistemology as a systematic philosophical program, addressing confirmation, explanation, and scientific methodology.

2003

Lara Buchak, James Joyce, and others extend Bayesian epistemology to address accuracy-based arguments for probabilism, moving beyond Dutch book arguments to non-pragmatic justifications.

The Two Central Norms

Bayesian epistemology rests on two foundational norms. The first is probabilism: a rational agent's credences should satisfy the Kolmogorov axioms at any given time. The second is conditionalization: upon learning that E is true, the agent should update all credences by conditionalizing on E. Together, these norms yield a complete theory of synchronic and diachronic rationality for partial belief.

The justification for probabilism typically comes from one of three routes. The Dutch book argument shows that an agent whose credences violate probability axioms can be offered a set of bets, each individually acceptable by her own lights, that collectively guarantee a sure loss. The accuracy argument, pioneered by James Joyce, shows that non-probabilistic credences are accuracy-dominated: there exists a probabilistic credence function that is closer to the truth in every possible world. The representation theorem approach, following Savage, derives probability from rationality axioms on preferences.

Dutch Books and the Pragmatic Justification

A Dutch book is a set of bets that guarantees a net loss regardless of the outcome. If your credences violate the probability axioms — for instance, if P(A) + P(~A) ≠ 1 — then a clever bookie can construct such a set. The Dutch book theorem (Ramsey 1926, de Finetti 1937) shows that coherence with the probability axioms is both necessary and sufficient for immunity from Dutch books. This provides a pragmatic justification for probabilism: incoherent beliefs are exploitable.

Confirmation Theory

One of Bayesian epistemology's greatest achievements is its account of confirmation. Evidence E confirms hypothesis H just in case P(H | E) > P(H) — that is, just in case the evidence raises the probability of the hypothesis. The degree of confirmation can be measured by various functions: the ratio measure P(H | E) / P(H), the difference measure P(H | E) - P(H), or the log-likelihood ratio log[P(E | H) / P(E | ~H)].

This framework elegantly resolves classical puzzles in confirmation theory. The raven paradox — whether observing a non-black non-raven confirms "all ravens are black" — receives a nuanced answer: it does confirm, but by a negligibly small amount, exactly as intuition suggests. The problem of old evidence — how can evidence already known confirm a new theory? — is addressed through counterfactual conditionalization or by modeling the learning of a logical implication.

Challenges and Extensions

Bayesian epistemology faces several well-known challenges. The problem of the priors asks how an agent should set initial credences before any evidence arrives. Radical subjectivists hold that any coherent prior is permissible; objectivists argue for specific priors based on symmetry, maximum entropy, or other principles. The problem of old evidence challenges simple conditionalization when the evidence was known before the theory was formulated. The problem of logical omniscience notes that real agents cannot compute all logical consequences of their beliefs, yet probabilism seems to require this.

Richard Jeffrey extended conditionalization to handle uncertain evidence through what is now called Jeffrey conditionalization: if experience does not make the agent certain of E but merely shifts her credence in E, the update propagates this shift through the probability calculus. This generalization is essential for modeling perceptual learning, where experience rarely produces certainty.

"The subjectivist states his judgments, whereas the objectivist sweeps them under the carpet by calling assumptions knowledge, and he basks in the illusion of parading objectivity." — Bruno de Finetti, Theory of Probability (1974)

Bayesian Epistemology in Practice

Beyond its philosophical significance, Bayesian epistemology has shaped practical methodology across the sciences. The requirement of coherent credences informs the design of prediction markets and expert elicitation protocols. The conditionalization norm underlies sequential analysis in clinical trials. And the Bayesian framework for confirmation provides a rigorous language for assessing the evidential import of experimental results — an alternative to the much-criticized null hypothesis significance testing paradigm.

Bayesian epistemology also provides the philosophical foundation for Bayesian statistics itself. The statistical machinery of priors, likelihoods, and posteriors is not merely a computational technique; it is an implementation of norms that, if the Bayesian epistemologist is right, govern all rational inquiry under uncertainty.

Example: A Juror Weighing Evidence in a Trial

A juror enters a courtroom for a burglary trial. Before any evidence is presented, she must start with some prior degree of belief in the defendant's guilt. The legal system instructs "innocent until proven guilty," which in Bayesian terms means starting with a low prior — say, P(Guilty) = 0.05.

Sequential Updating Through Trial Evidence

As the trial proceeds, each piece of evidence updates the juror's credence via conditionalization — the core norm of Bayesian epistemology:

Evidence 1: Fingerprints at the Scene The defendant's fingerprints were found on the broken window.
P(Fingerprints | Guilty) = 0.90    P(Fingerprints | Innocent) = 0.05
Likelihood ratio = 18 → Credence rises to ~49%

Evidence 2: Alibi Witness A friend testifies the defendant was at a bar that night.
P(Alibi | Guilty) = 0.30    P(Alibi | Innocent) = 0.80
Likelihood ratio = 0.375 → Credence drops to ~26%

Evidence 3: Stolen Goods in Car Police found the stolen items in the defendant's trunk.
P(Items | Guilty) = 0.85    P(Items | Innocent) = 0.02
Likelihood ratio = 42.5 → Credence rises to ~94%
Bayesian Epistemology in Practice

The juror's reasoning illustrates the three core norms of Bayesian epistemology: (1) probabilism — her beliefs at each stage form a coherent probability distribution; (2) conditionalization — she updates by multiplying her odds by each likelihood ratio; and (3) calibration — her final 94% credence should ideally mean that in cases where she's this confident, the defendant is guilty about 94% of the time. Bayesian epistemology says this is not merely one way of reasoning — it is the uniquely rational way.

Interactive Calculator

Each row is a piece of trial evidence with its direction (for or against the defendant) and strength (strong, moderate, or weak). The juror starts with P(Guilty) = 5% (presumption of innocence) and updates sequentially via conditionalization — the fundamental norm of Bayesian epistemology.

Click Calculate to see results, or Animate to watch the statistics update one record at a time.

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