Prior Probability Dissection
GMAT glossary · Playbook
Definition
Historical baseline data hides the unknown selection rule you need before today's probability.
Prior Probability Dissection in plain English
Pull Prior Probability Dissection when historical baseline data hides the unknown selection rule you need before today's probability. Clues include Historical rate, audit baseline, reverse-engineer the selection rule. Blueprint: Use the baseline table to solve for the hidden selection weights. Only then compute today's conditional probability. Why it beats the long way: Skipping the dissection leaves you multiplying by a prior you never measured. Micro-example: Historical audit: 60% of flagged files were Type A and 40% Type B, but flags catch 80% of A and 20% of B. Reverse-engineer the selection weights from that table before computing today's P(Type A | flagged).
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