In Exercise 8, suppose that you stand to lose 5 cents if you decide that the bookbag

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In Exercise 8, suppose that you stand to lose 5 cents if you decide that the bookbag contains 70R — 30B when it actually contains 70B — 30R, and you stand to lose 10 cents if the opposite error is made. Construct a table showing the two expected loss values, and consider the following decision-rule: decide 70R — 30B if 7 or more out of the sample of 10 turn out to be red, and decide 70B — 30R otherwise. Compare this decision-rule with the one you found in Exercise 8.

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Statistics Probability Inference And Decision

ISBN: 9780030778056

1st Edition

Authors: Robert L. Winkler, William L. Hays

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