Bayes' theorem can be used to investigate food allergies by determining the conditional probability that someone truly has a food allergy given that they claim to have one. Using data that estimates 4-8% of children and 1-2% of adults have food allergies, and 30% of people claim to have a food allergy, Bayes' theorem indicates there is a 20% chance a child truly has an allergy if their parent claims they do, and only a 5% chance for an adult if they claim to have a food allergy. Bayes' theorem is useful for making rational decisions based on probabilities and conditional probabilities.