# Question

With reference to the definition of Exercise 9.16, find the decisions that will minimize the maximum opportunity loss of

(a) Ms. Cooper of Exercise 9.12;

(b) The truck driver of Exercise 9.13.

(a) Ms. Cooper of Exercise 9.12;

(b) The truck driver of Exercise 9.13.

## Answer to relevant Questions

With reference to Example 9.1, suppose that the manufacturer has the option of hiring an infallible fore-caster for $ 15,000 to find out for certain whether there will be a recession. Based on the original 2 to 1 odds that ...Verify the two probabilities 4/17 and 13/17, which we gave on page 265, for the randomized strategy of Player B. A statistician has to decide on the basis of two observations whether the parameter θ of a binomial distribution is 1/4 or 1/2 ; his loss (a penalty that is deducted from his fee) is $ 160 if he is wrong. (a) Construct a ...If we assume in Example 9.8 that is a random variable having a uniform density with α = 0 and β = 1, show that the Bayes risk is given by Also show that this Bayes risk is a minimum when a = 1 and b = 2, so that the ...If Θ1 and Θ2 are independent unbiased estimators of a given parameter θ and var(Θ1) = 3 ∙ var(Θ2), find the constants a1 and a2 such that a1Θ1 + a2Θ2 is an unbiased estimator with minimum variance for such a linear ...Post your question

0