Bayesian method refers to the application of Bayesian statistics and inference techniques to analyze and make decisions based on data collected from retail operations. Bayesian methods incorporate prior knowledge or beliefs about a problem and update them with observed data to make probabilistic predictions or inferences.
In retail, these methods can be used for various purposes, such as demand forecasting, customer segmentation, pricing optimization, inventory management, and personalized marketing. By integrating prior knowledge with observed data, Bayesian methods allow retailers to make informed decisions that account for uncertainty and improve overall operational efficiency. These techniques provide a framework for data-driven decision-making, allowing retailers to adapt and respond to changing market conditions and customer preferences more effectively.
