Question: Decision theoretic approach for sample size estimation. (Requires calculus.) In a decision theoretic approach, two functions are specified: L (n) = Loss or cost of

Decision theoretic approach for sample size estimation. (Requires calculus.) In a decision theoretic approach, two functions are specified:
L (n) = Loss or €œcost€ of a bad estimate
C (n) = Cost of taking the sample
Suppose that for some constants c0, c1, and k,

What sample size n minimizes the total cost L (n) + C (n)?

rl NI n C(n) = C0 + Cln.

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