Consider a model for the mix of male and female children in families. Let Ki denote the

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Consider a model for the mix of male and female children in families. Let Ki denote the family size (number of children), Ki = 1, c. Let Fi denote the number of female children, Fi = 0, ... , Ki. Suppose the density for the number of female children in a family with Ki children is binomial with constant success probability θ:

We are interested in analyzing the “probability,” θ. Suppose the (conjugate) prior over u is a beta distribution with parameters a and b:

Your sample of 25 observations is given here:

a. Compute the classical maximum likelihood estimate of θ.
b. Form the posterior density for θ given (Ki, Fi), i = 1, ... , 25 conditioned on a and b.
c. Using your sample of data, compute the posterior mean assuming a = b = 1.
d. Using your sample of data, compute the posterior mean assuming a = b = 2.
e. Using your sample of data, compute the posterior mean assuming a = 1 and b = 2.

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Econometric Analysis

ISBN: 9780134461366

8th Edition

Authors: William H. Greene

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