Consider the situation described in Exercise 7 of Sec 8 5 Use a prior distribution from the normal gamma family with values 0 1, 0 4, 0 150, and 0 0 5 a Find the posterior distribution of and 1 2 b Find an interval (a, b) such that the posterior probability is 0 90 that a b ...

a For the 20 observations given in Exercise 7 of Sec 8 ...

Consider the situation described in Exercise 7 of Sec. 8.5. Use a prior distribution from the normal-gamma

Question:

Consider the situation described in Exercise 7 of Sec. 8.5. Use a prior from the normal-gamma family with values α0 = 1, β0 = 4, μ0 = 150, and λ0 = 0.5.
a. Find the posterior of μ and τ = 1/σ 2.
b. Find an interval (a, b) such that the posterior probability is 0.90 that a < μ < b. Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...