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.)
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