Do You agree or disagree on this comment and explain why.

"In the Bayesian approach, the parameters that we are trying to estimate are treated as random variables, whereas, in the Classical (Frequentist) approach, the parameters are fixed.

Bayesian approach makes probabilistic statements about the parameter, whereas in Classical (Frequentist) approach, the real and fixed value of the parameter is assumed to exist, for which no uncertainty regarding that fixed value is quantified.

The key difference between Bayesian and classical approach are in the concept of replications (or the way they use the concept of replications) the classical approach fixes the parameter of interest, and replicates the data, whereas the Bayesian approach fixes the data, and replicates the parameter of interest.

Advantages of using Bayesian approach in finance are:

• The Bayesian approach provides inferences that are conditional on the data and are exact, without reliance on asymptotic approximation.
• It provides a convenient setting for a wide range of models, such as hierarchical models and missing data problems.
• It leads to better communication of uncertainty than classical approach
• The key advantage of Bayesian approach is in the simplicity associated with its inferential strategy that creates a unified probability framework that works on all the unknown."