In a Bayesian model the parameter is random. Its prior distribution states what is believed before the data; the posterior distribution is the Bayesian update of it by the likelihood of the data (Bayes, 1763). A family of priors is a conjugate prior for a likelihood if the posterior stays in the family.
Quantitative Finance · Glosarium
Apa itu Prior, posterior, conjugate prior?
Dikenal juga sebagai: prior distribution · posterior distribution · conjugate prior