What Is Bayes Theorem and Why Is it Important for Business and Finance?

There is some debate among economists on whether credit should also be given to another economist, Richard Price, who edited and corrected Bayes' paper in 1763, after his death in 1761. Another wrinkle on Bayes Theorem stems from a 1774 paper by French mathematician Pierre-Simon Laplace, who was apparently unaware of Bayes original thesis. Historically, the Bayes Theorem has led to significant breakthroughs.