MODEL:
SETS: ! Computing probabilities using Bayes rule;
ACTUAL/1..3/: MPA; ! Marginal probability of actual;
FCAST/1..3/ : MPF; ! Marginal probability of forecast;
FXA( FCAST, ACTUAL):
CAGF, !Conditional prob of actual given forecast;
CFGA, !Conditional prob of forecast given actual;
JP; ! Joint probability of both;
ENDSETS DATA:
! Conditional probability of forecast, given actual;
CFGA = .80 .15 .20
.10 .70 .20
.10 .15 .60;
! Marginal probabilities of actual;
MPA = .5 .3 .2;
ENDDATA
! The calculations;
!Marginal probabilities are sum of joint probabilities;
@FOR( ACTUAL( J):
MPA( J) = @SUM( FCAST( I): JP( I, J));
);
@FOR( FCAST( I):
MPF( I) = @SUM( ACTUAL( J): JP( I, J));
);
!Bayes rule relating joint to conditional probabilities;
@FOR(FXA( I, J):
JP( I, J) = MPF( I) * CAGF( I, J);
JP( I, J) = MPA( J) * CFGA( I, J); );
END
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