5. Use quadratic regression to analyze the data in Table 3.4, which relate property taxes and age...

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5. Use quadratic regression to analyze the data in Table 3.4, which relate property taxes and age for a random sample of 19 homes. The response variable Y is property taxes assessed on each home (in dollars), while the explanatory variable X is age of the home (in years). Assume a normal likelihood and the noninformative prior π(β, σ)=1/σ, where

β = (β0, β1, β2) and the model is Yi = β0 + β1Xi + β2X2 i + i. Find the first two moments (hence a point and interval estimate) for the intercept

β0 assuming:

(a) standard frequentist methods.

(b) asymptotic posterior normality (first order approximation).

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Bayesian Methods For Data Analysis

ISBN: 9781584886976

3rd Edition

Authors: Bradley P. Carlin, Thomas A. Louis

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