Summary
We have attempted to show the way in which Bayesian and classical approaches are both similar and divergent. The vehicle for discussion, primarily, involved considerations of cost consequences, planning horizons and numbers of alternatives. In turn, these variables were related to the statistical problem continuum, with classical and Bayesian approaches at opposite ends of the scale. By relating problem variables to this continuum, the question of which approach is most appropriate in a particular situation can be more readily resolved.
Similar content being viewed by others
References
Hirschleifer, J., “The Bayesian Approach to Statistical Decision: An Exposition.”Journal of Busines, Vol. 34 No. 4 (October, 1961), pp. 471–489.
Raiffa, H. and Schlaifer, R.,Applied Statistical Decision Theory (Boston, Massachusets: Harvard University Press, 1961); especially pp. vii-xx.
Overall, John E., “Classical Statistical Hypothesis Testing within the Context of Bayesian Theory.”Psychological Bulletin, Vol. 71, No. 4 (1969), pp. 285–292.
Cornfield, J., “The Bayesian Outlook and its Application.”Biometrics, Vol. 25, No. 4 (December, 1969), pp. 617–642.
Hays, W. L. and Winkler, R. L.,Statistics, Probability, Inference and Decision (New York: Holt, Rinehart & Winston Inc., 1970).
Sasaki, K.,Statistics for Modern Business Decision Making (Belmont, California: Wadsworth Publishing Company, 1968).
Wonnacott, T. H. and Wonnacott, R. J.,Introductory Statistics (New York: Wiley, 1969).
Birnbaum, A., “On the Foundations of Statistical Inference.”American Statistical Assocaition Journal, Vol. 57, No. 298 (June, 1962), pp. 269–306, with discussion on pp. 269–326.
Lehmann, E. L. “Significance Level and Power.”Annals of Mathematical, Statistics, Vol. 29 (1958), pp. 1167–1176.
Novick, M. R. and Grizzle, J. E. “A Bayesian Approach to the Analysis of Data from Clinical Trials.”American Statistical Association Journal, Vol. 60, No. 304 (March, 1965), pp. 81–96.
Myers, B. L. and Melcher, A. J. “On the Choice of Risk Levels in Managerial Decision Making.”Management Science, Vol. 16, Part 1, No. 2 (October, 1969), pp. B31-B39.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Myers, B.L., Enrick, N. Classical error pairs and the Bayesian prior. JAMS 1, 43–51 (1973). https://doi.org/10.1007/BF02729314
Issue Date:
DOI: https://doi.org/10.1007/BF02729314