6533b7dbfe1ef96bd126fe44

RESEARCH PRODUCT

Deriving Reference Decisions

María Teresa Rabena Pérez

subject

Statistics and ProbabilityMathematical optimizationWeak topologyOrder (exchange)Prior probabilityBayesian probabilityProbability distributionStatistics Probability and UncertaintyDecision problemParameter spaceOptimal decisionMathematics

description

To solve a statistical decision problem from a Bayesian viewpoint, the decision maker must specify a probability distribution on the parameter space, his prior distribution. In order to analyze the influence of this prior distribution on the solution of the problem, Bernardo (1981) proposed to compare the results with those that one would obtain by using that prior distribution which maximizes the useful experimental information, thus introducing the concept of reference decision. This definition is too involved for most of the problems usually found in practice. Here we analyze situations in which it is possible to simplify the definition of the reference decision, and we provide conditions guaranteeing the existence of such decisions.

https://doi.org/10.1007/bf02565108