Question: In Exercise 11, the manager is interested in the hypotheses Ho'-p. < 110 and Hi'.p > 110. From the prior distribution, find the prior odds
In Exercise 11, the manager is interested in the hypotheses Ho'-p. < 110 and Hi'.p > 110. From the prior distribution, find the prior odds ratio; also, from the posterior distribution, find the posterior odds ratio. If the losses involved in a decision-making problem involving the production process are such that H0 should be accepted only if the posterior odds ratio is greater than 3, what decision should be made?
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