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Aug 27,2025
Introduction to Statistical Decision Theory – Edition 2: Foundations of Estimation and Hypothesis Testing
1. Point Estimation Example Estimating Variance in the Normal Model Let \(X_1, \ldots, X_n \sim N(\mu, \sigma^2)\). We are interested in estimating \(\theta = \sigma^2\). Well-known estimators: Sample variance (unbiased): $$\hat{\sigma}^2 = \frac{1}{n-1} \sum_{i=1}^n (X_i…
Aug 26,2025
Introduction to Statistical Decision Theory – Edition 3: Ethical and Strategic Decisions Under Uncertainty
This third edition presents a real-world-inspired decision-theoretic scenario rooted in the classical formulation of I. J. Good (1952), where human incentives, ethical dilemmas, and corporate strategy intersect. A new invention is presented to a company’s…
Aug 26,2025
Making Bayesian Statistics Accessible to Everyone – Edition 2: Motivating Examples to Deepen Intuition
Introduction In the first edition of this series, we introduced the fundamental distinction between the frequentist and Bayesian paradigms, using the estimation of a population mean as a guiding example. We explored how the Bayesian…
Aug 26,2025
Introduction to Statistical Decision Theory- Edition 4: Cold Weather, Warm Decisions
A Practical Decision Under Uncertainty: Heating or Buying a Pullover? In this fourth edition, we analyze a relatable and simple decision problem using the framework of statistical decision theory. The goal is to determine the…
Aug 26,2025
Making Bayesian Statistics Accessible to Everyone – Edition 3: Understanding the Beta-Binomial Distribution
Introduction This third edition is presented as a focused interlude to formally introduce an essential building block of Bayesian modeling: the Beta-Binomial distribution. This distribution is not only elegant from a mathematical perspective, but also…
Aug 26,2025
Introduction to Statistical Decision Theory- Edition 5: Optimal Decision Rules
Content Main topics: Admissible decision rules Bayes decision rules Minimax decision rules Context: Parameter estimation 1. Admissibility: The Idea In statistical decision theory, we aim to choose good decision rules from all possible ones. Let…