This chapter is devoted to the implementation and evaluation of decision-theoretic analysis based on the Bayes principle introduced in Section 1.5. Bayesian analysis has many vocal supporters. This is largely due to the fact that there are compelling “rationality” arguments which support the use of the Bayesian approach. It is enlightening to begin with a discussion of these arguments.
KeywordsPosterior Distribution Bayesian Analysis Prior Density Credible Region Minimax Regret
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