Your are estimating (pi), the proportion of Fancy diamonds of quality IF and VVS, in a diamond
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Your are estimating \(\pi\), the proportion of "Fancy diamonds" of quality IF and VVS, in a diamond mining project where they are considering buying new and expensive mining equipment if this proportion exceeds 0.1 . Owing to the high costs, they will be determining whether \(H_{1}: \pi>0.1\) with significance \(\alpha=0.1\). For your report, you use Jeffreys' prior \((u=0.5)\). After examining 172 rocks, you have found 19 that are either IF or VVS, whereas the rest are of lower grade. What will be your recommendation for the mining project?
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Related Book For
The Bayesian Way Introductory Statistics For Economists And Engineers
ISBN: 9781119246879
1st Edition
Authors: Svein Olav Nyberg
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