A unified approach to all problems of prediction, estimation, and hypothesis testing. It is based on concept of the decision function, which tells the performer of experiment how to conduct the statistical aspects of an experiment and which action to take for each possible outcome. Choosing the decision function needs a loss function to be defined which assigns numerical values to making bad or good decisions. Explicitly a general loss function is denoted by L d; expressing how bad it would be to make decision d if the parameter value were. A quadratic loss function, it could be defined as

 

and a bilinear loss function as

 

 

Posted Date: 7/27/2012 2:08:11 AM | Location : United States

Ask an Expert

Related Discussions:- Decision theory, Assignment Help, Ask Question on Decision theory, Get Answer, Expert's Help, Decision theory Discussions

Write discussion on Decision theory
Your posts are moderated

Write your message here..

Related Questions

Collapsing categories, Collapsing categories : A procedure generally applie... Collapsing categories : A procedure generally applied to contingency tables in which the two or more row or column categories are combined, in number of cases so as to yield the re

Ordinal variable, Ordinal variable is a measurement which allows a sample ... Ordinal variable is a measurement which allows a sample of the individuals to be ranked with respect to some characteristic but where differences at different points of the scale

Quantile regression, Quantile regression is an extension of the classical ... Quantile regression is an extension of the classical least squares from estimation of the conditional mean models to the estimation of the variety of models for many conditional q

Multimodal distribution, Multimodal distribution is the probability distri... Multimodal distribution is the probability distribution or frequency distribution with number of modes. Multimodality is frequently taken as an indication which the observed di

Explain household interview surveys, Household interview surveys : The surv... Household interview surveys : The surveys in which the primary sampling units are typically geographic regions such as nations or cities. For each such unit sampled, there are addi

Back-projection, Back-projection: A term most often applied to the procedu... Back-projection: A term most often applied to the procedure for reconstructing plausible HIV incidence curves from the AIDS incidence data. The method or technique assumes that th

Quota sample, Quota sample is the sample in which the units are not select... Quota sample is the sample in which the units are not selected at the random, but in terms of a particular number of units in each of a number of categories; for instance, 10 men

Dirichlet tessellation, A construction for events that happen in some plana... A construction for events that happen in some planar area a, consisting of the series of 'territories' each of which comprises of that part of a closer to the particular event xi t

Statistics HW, we are testing : Ho: µ=40 versus Ha: µ>40 (a= 0.01) Suppose... we are testing : Ho: µ=40 versus Ha: µ>40 (a= 0.01) Suppose that the test statistic is z0=2.75 based on a sample size of n=25. Assume that data are normal with mean mu and standa

Explain Grade of membership model, Grade of membership model: This is the ... Grade of membership model: This is the general distribution free method for the clustering of the multivariate data in which only categorical variables are included. The model ass