CEO and MBA
Author: raj
Category: Finance
To geek out, Baye’s rule
P(A|B) = P(A) * P(B|A) / P(B)
Call A = being a CEO of a fortune 500 company, B = having an MBA
So 39% of fortune 500 ceo’s have an MBA, so P(B|A) = 0.39
Whats P(B), the probabilty of a given person having an MBA? Its going to be less than 30%. Figure its around 1%. So
P(A|B) = P(A) * 0.39/0.01 = 39 * P(A)
So you are 39x more likely to be a CEO of a fortune 500 company with an MBA than without.