LazerR.I., “The Discrimination Danger in Performance Appraisal,”Conference Board Record, Vol. 13 (1976).
3.
One might be tempted to estimate the probabilities of the outcomes directly given the informational outcome. This will, in general, produce unsatisfactory results, particularly when the prior probabilities change. Note that when we use Baves Theorem, the posterior probabilities are responsive to these prior probabilities.