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The Assessment of Statistical Information

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Abstract

The formal analysis of the option to incorporate a given information source into a decision problem requires the DM to enumerate the potential messages, ascertain the statistical relationship between each potential message and each possible state of nature, decide upon the optimal decision rule conditional on each message, and recognize that information processing has costs that may depend upon any and all of these activities. Optimal incorporation requires considerable specificity in the framing of the problem; one of the key ingredients is the specification of the statistical characteristics of the random variables. Under the prerequisite that the resulting assessments are coherent with the laws of probability, this chapter offers an overview of techniques for eliciting prior knowledge and for developing foreknowledge of the information structure.

Keywords

Gross Domestic Product Posterior Distribution Prior Distribution Decision Problem Forecast Error 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  1. 1.College of Business and Public AdministrationDrake UniversityDes MoinesUSA

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