In Exercise 7.23 the posterior distribution of 2, the variance of a normal population, given S2, the

Question:

In Exercise 7.23 the posterior distribution of σ2, the variance of a normal population, given S2, the sample variance based on a sample of size n, was found using a conjugate prior for σ2 (the inverted gamma pdf with parameters a and 3). Based on observing S2, a decision about the hypotheses Ho: σ ≤ 1 versus H0: σ > 1 is to be made.
(a) Find the region of the sample space for which P(a < l|s2) > P(a > l|s2), the region for which a Bayes test will decide that a ≤ 1.
(b) Compare the region in part (a) with the acceptance region of an LRT. Is there any choice of prior parameters for which the regions agree?
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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Statistical Inference

ISBN: 978-0534243128

2nd edition

Authors: George Casella, Roger L. Berger

Question Posted: