You are estimating (pi), the proportion who prefer MegaCola to its competitors, and your posterior hyperparameters for
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You are estimating \(\pi\), the proportion who prefer MegaCola to its competitors, and your posterior hyperparameters for \(\pi\) are \(a_{1}=41.5\) and \(b_{1}=9.5\). If the proportion who prefer MegaCola is more than 75\%, MegaCola will launch a costly campaign. A consideration of the utilities on both sides results in your having to decide whether \(\pi>0.75\) with significance \(\alpha=0.1\). What will be your recommendation to MegaCola?
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The Bayesian Way Introductory Statistics For Economists And Engineers
ISBN: 9781119246879
1st Edition
Authors: Svein Olav Nyberg
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