Bayes’ Theorem is a fundamental concept in probability and statistics that provides a way to update our beliefs about a situation based on new evidence. It allows us to calculate the probability of an event occurring given prior knowledge or conditions. Essentially, it helps us adjust our expectations in light of new information. For instance, if we have an initial belief about the likelihood of an event and then receive additional data that impacts this belief, Bayes’ Theorem helps us revise the probability accordingly. This theorem is widely used in various fields, including medical diagnosis, finance, and machine learning, to make more informed decisions by integrating prior knowledge with new observations.