You are given a (posterior) distribution for (pi sim beta_{(a, b)}), a significance (alpha), and (H_{1}). Test
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You are given a (posterior) distribution for \(\pi \sim \beta_{(a, b)}\), a significance \(\alpha\), and \(H_{1}\). Test the following competing hypotheses, to decide between them, both by direct calculation and by Normal approximation.
(a) Posterior: \(\pi \sim \beta_{(35,24)}, \alpha=0.1\), and \(H_{1}: \pi>0.5\).
(b) Posterior: \(\pi \sim \beta_{(78,21)}, \alpha=0.05\), and \(H_{1}: \pi<0.85\).
(c) Prior: \(\pi \sim \beta_{(1,1)}\). Observations: 22 positive outcomes and 51 negative. \(\alpha=0.02\), and \(H_{1}: \pi>0.2\).
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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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