You are given the prior hyperparameters of a binomial process, observation data, and a value (p). Find
Question:
You are given the prior hyperparameters of a binomial process, observation data, and a value \(p\). Find the posterior distribution for \(\pi\) and its Normal approximation. Further, calculate the probability \(P(\pi \leq p)\) both by exact calculation on \(\beta\), and by using the Normal approximation.
(a) Prior hyperparameters: \(a_{0}=2, b_{0}=2\). Observations: 17 positive, 29 negative. \(p=0.4\).
(b) Prior: \(\beta_{(1,7)}\). Observed: \(k=4\) positive and \(l=89\) negative. \(p=0.07\).
(c) Prior hyperparameters: \(a_{0}=0, b_{0}=0\). Observed: \(k=42\) positive and \(l=13\) negative. \(p=0.7\).
(d) Prior: \(\beta_{(0.5,0.5)}\). Observed: \(k=434\) positive and \(l=177\) negative. \(p=0.7\).
Step by Step Answer:
The Bayesian Way Introductory Statistics For Economists And Engineers
ISBN: 9781119246879
1st Edition
Authors: Svein Olav Nyberg