Here is a link to an article in Economist about some research that seems to show that people might be using prior distributions to make predictions. The article also points out a more important
reason why Bayes is considered big--Bayesian view in statistics allows predictions even with little data, since it assumes that there may be a prior distribution. Frequentists on the other hand distrust priors
and depend only on the data. In practice this means that Bayesians can jump to conclusions with much less data.
http://www.economist.com/science/displaystory.cfm?story_id=5354696&no_na_tran=1
(and here is a more technical paper on which that article is based: http://web.mit.edu/cocosci/Papers/Griffiths-Tenenbaum-PsychSci06.pdf )
See also Wikipedia entry for Bayesian Probability http://en.wikipedia.org/wiki/Bayesian_probability which makes it clear that a Bayesian does not tie
probabilities to relative frequencies--she is happy to give a probability to some event such as "seeing a grue wearing green shorts". This view of probability
is sometimes called "personal" probability. Bayesianism has come to dominate probability and statistics.
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The Human Language series I mentioned is the series described at http://www.thehumanlanguage.com/page1.html
It is an eminently watchable video series. The ASU media library has copies of this video.
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