A Definition of Conditional Probability with Non-Stochastic Information

Abstract

The current definition of a conditional probability enables one to update probabilities only on the basis of stochastic information. This paper provides a definition for conditional probability with non-stochastic information. The definition is derived by a set of axioms, where the information is connected to the outcome of interest via a loss function. An illustration is presented.

Keywords

• conditional probability
• loss function
• non-stochastic information