Question
In answering a question on a multiple choice test a student either knows the answer or guesses. Let $\frac{3}{4}$ be the probability that he knows the answer and $\frac{1}{4}$ be the probability that he guesses. Assuming that a student who guesses at the answer will be correct with probability $\frac{1}{4}$. What is the probability that a student knows the answer given that he answered it correctly?

Answer

Let A, E1 and E2 denote the events that the answer is correct, the student knows the answer and the student guesses the answer, respectively.
$\therefore\ \text{P}(\text{E}_1)=\frac{3}{4}$
$\text{P}(\text{E}_2)=\frac{1}{4}$
Now,
$\text{P}\Big(\frac{\text{A}}{\text{E}_1}\Big)=1$
$\text{P}\Big(\frac{\text{A}}{\text{E}_2}\Big)=\frac{1}{4}$
Using Baye's theorem, we get
Required probability $\text{P}\Big(\frac{\text{E}_1}{\text{A}}\Big)=\frac{\text{P}(\text{E}_1)\text{P}\Big(\frac{\text{A}}{\text{E}_1}\Big)}{\text{P}(\text{E}_1)\text{P}\Big(\frac{\text{A}}{\text{E}_1}\Big)+\text{P}(\text{E}_2)\text{P}\Big(\frac{\text{A}}{\text{E}_2}\Big)}$
$=\frac{\frac{3}{4}\times1}{\frac{3}{4}\times1+\frac{1}{4}\times\frac{1}{4}}$
$=\frac{3}{3+\frac{1}{4}}=\frac{12}{13}$

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