 Interest Rate Evaluation –

Investing, money lending, and currency trading all these business activities are
dependent upon interest rates prevailing in the market. Any uncertain/
unplanned changes in interest rate might hamper the company finances and
negatively impacts the profits.
Bayes theorem and probability estimations help in monitoring systemic changes
in the interest rates and also in evaluating and to reap the maximum benefits of
their financial resources.

 Judgement of Lending Loans

A customer's credibility and whether or not to allocate the loan is decided by

using Bayes theorem. The borrower's history alone may not be enough to make a
lending decision. The history of the borrower can be used to determine whether
he or she can be trusted with the loan or not, and will they repay it or not.

 Use in AI

The Bayes’ theorem can be applied in artificial intelligence. Past data and
algorithms are fed in the system to estimate the future values. It is expected to
get smarter by using the real-life results and comparing it with its own predicted
result. By using Bayes’ theorem we are able to extrapolate posterior possibilities.