Consider again the situation described in Exercise 22. This time, assume that there is a loss function

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Consider again the situation described in Exercise 22. This time, assume that there is a loss function of the form (9.8.6). Also, assume that the prior probability of θ = 0 is ξ0 and the prior probability of θ = 10 is ξ1.
a. Find the formula for the Bayes test for general loss function of the form (9.8.6).
b. Prove that the test in part (a) of Exercise 22 is not a special case of the Bayes test found in part (a) of the present exercise.
c. Prove that the test in part (b) of Exercise 22 is (up to rounding error) a special case of the Bayes test found in part (a) of the present exercise.
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Probability And Statistics

ISBN: 9780321500465

4th Edition

Authors: Morris H. DeGroot, Mark J. Schervish

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