Question: 1.38 Consider estimating the ratio /; of two multinomial parameters. Should the estimate depend at all on the counts in other categories? a. With a

1.38 Consider estimating the ratio πί/π; of two multinomial parameters. Should the estimate depend at all on the counts in other categories?

a. With a frequentist approach, explain why the ML estimate of πί/π; is n₁/nj.

b. For a Dirichlet prior, show that using the Bayes estimates of π; and π; to estimate

πί/π; uses also the counts in other categories. (However, the posterior distribution of y = π₁/(πί + π;) is the same as its posterior distribution ignoring the other counts and treating y₁ as binomial with sample size (y + yj) and parameter y.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Business Analytics Data Questions!