Suppose that a random sample X1, ,Xn is to be taken from the normal distribution with unknown mean and variance 100, and the prior distribution of is the normal distribution with specified mean 0 and variance 25 Suppose that is to be estimated using the squared error loss function, and the sampling...

The Bayes estimator of is the mean of the posterior distribution of and t ...

Suppose that a random sample X1, . . . ,Xn is to be taken from the normal

Question:

Suppose that a random sample X1, . . . ,Xn is to be taken from the normal with unknown mean θ and variance 100, and the prior of θ is the normal with specified mean μ0 and variance 25. Suppose that θ is to be estimated using the squared error loss function, and the sampling cost of each observation is 0.25 (in appropriate units). If the total cost of the estimation procedure is equal to the expected loss of the Bayes estimator plus the sampling cost (0.25)n, what is the sample size n for which the total cost will be a minimum?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...