Question: Assume that X1, ...,X20 is a random sample from the N(, 1). (i) Obtain the Bayes factor for testing H0 : = 0 against
Assume that X1, ...,X20 is a random sample from the N(θ, 1). (i) Obtain the Bayes factor for testing H0 : θ = 0 against H1 : θ = 0 if the prior distribution of θ under H1 is N(0.5, 0.25). Use xi = 7. (ii) Test the same hypothesis in a non-Bayesian framework and compare both results.
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