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Suppose that the proportion θ of defective items in a large manufactured lot is known to be either 0.1 or 0.2, and the prior p.f. of \(\theta \) is as follows:

\(\xi \left( {0.1} \right) = 0.7\)and\(\xi \left( {0.2} \right) = 0.3\).

Suppose also that when eight items are selected at random from the lot, it is found that exactly two of them are defective. Determine the posterior p.f. of \(\theta \)

Short Answer

Expert verified

Posterior pf of \(\theta \) is \(\xi \left( {0.1|x} \right) = 0.5418\)and \(\xi \left( {0.2|x} \right) = 0.4582\)

Step by step solution

01

Given information

Let \(\theta \) the proportion of defective items in a large manufactured lot is either 0.1 or 0.2

02

Calculating posterior pf of \(\theta \)

Let 8 items be selected at random from the lot. From which exactly two of them are defective.

Then from the definition of proportion of defective items.\({X_1}...{X_n}\)form n Bernoulli trails with parameter\(\theta \)

The p.f. of the each observations\({X_i}\) is given

\(f\left( {x|\theta } \right) = \left\{ \begin{aligned}{l}{\theta ^x}{\left( {1 - \theta } \right)^{1 - x}}\;\;\;\;\;{\rm{for}}\;x = 0,1\\0\;\;\;\;\;\;\;\;\;\;\;\;\;\;{\rm{otherwise}}.\end{aligned} \right.\)

If\(y = \sum\limits_{i = 1}^n {{x_I}} \)then the joint pf of\({X_1},...{X_n}\)can be written in the form for\({x_i} = 0\;{\rm{or}}\;1\):

\({f_n}\left( {x|\theta } \right) = {\theta ^y}{\left( {1 - \theta } \right)^{n - y}}\)

Since n = 8 and y = 2

\(\begin{aligned}{f_n}\left( {x|\theta } \right) = {\theta ^2}{\left( {1 - \theta } \right)^{8 - 2}}\\ = {f_n}\left( {x|\theta } \right) = {\theta ^2}{\left( {1 - \theta } \right)^6}\end{aligned}\)

Definition of the posterior pf is:

\(\)\(\xi \left( {\theta |x} \right) = \frac{{f\left( {{x_1}|\theta } \right)...f\left( {{x_n}|\theta } \right)\xi \left( \theta \right)}}{{{g_n}\left( x \right)}}\)

Therefore,

\(\begin{aligned}\xi \left( {0.1|x} \right) = {\rm P}\left( {\theta = 0.1|x} \right)\\ = \frac{{\xi \left( {0.1} \right){f_n}\left( {x|0.1} \right)}}{{\xi \left( {0.1} \right){f_n}\left( {x|0.1} \right) + \xi \left( {0.2} \right){f_n}\left( {x|0.2} \right)}}\\ = \frac{{\left( {0.7} \right){{\left( {0.1} \right)}^2}{{\left( {0.9} \right)}^6}}}{{\left( {0.7} \right){{\left( {0.1} \right)}^2}{{\left( {0.9} \right)}^6} + \left( {0.3} \right){{\left( {0.2} \right)}^2}{{\left( {0.8} \right)}^6}}}\end{aligned}\)

\(\xi \left( {0.1|x} \right) = 0.5418\)

and\(\xi \left( {0.2|x} \right)\)can be calculated as

\(\begin{aligned}\xi \left( {0.2|x} \right) = 1 - \xi \left( {0.1|x} \right)\\ = 1 - 0.5418\\ = 0.4582\end{aligned}\)

Hence Posterior pf of \(\theta \) is \(\xi \left( {0.1|x} \right) = 0.5418\)and \(\xi \left( {0.2|x} \right) = 0.4582\)

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Most popular questions from this chapter

Suppose that a single observation X is to be taken from the uniform distribution on the interval \(\left[ {{\bf{\theta - }}\frac{{\bf{1}}}{{\bf{2}}}{\bf{,\theta + }}\frac{{\bf{1}}}{{\bf{2}}}} \right]\), the value of θ is unknown, and the prior distribution of θ is the uniform distribution on the interval [10, 20]. If the observed value of X is 12, what is the posterior distribution of θ?

Consider a distribution for which the pdf. or the p.f. is \(f\left( {x|\theta } \right)\) , where the parameter θ is a k-dimensional vector belonging to some parameter space\(\Omega \) . It is said that the family of distributions indexed by the values of θ in\(\Omega \) is a k-parameter exponential family, or a k-parameter Koopman-Darmois family, if \(f\left( {x|\theta } \right)\)can be written as follows for \(\theta \in \Omega \)and all values of x:

\(f\left( {x|\theta } \right) = a\left( \theta \right)b\left( x \right)\exp \left( {\sum\limits_{i = 1}^k {{c_i}\left( \theta \right){d_i}\left( x \right)} } \right)\)

Here, a and \({c_1},...,{c_k}\) are arbitrary functions of θ, and b and \({d_1},...,{d_k}\) are arbitrary functions of x. Suppose now that \({X_1},...,{X_n}\) form a random sample from a distribution which belongs to a k-parameter exponential family of this type, and define the k statistics \({T_1},...,{T_k}\) as follows:

\({T_i} = \sum\limits_{j = 1}^n {{d_i}\left( {{X_j}} \right)} \)

Show that the statistics \({T_1},...,{T_k}\)are jointly sufficient statistics for θ.

Consider again the conditions of Exercise 6, and suppose that the value of θ must be estimated by using the squared error loss function. Show that the Bayes estimators, for n = 1, 2,..., form a consistent sequence of estimators of θ.

Suppose that 21 observations are taken at random from an exponential distribution for which the mean μ is unknown (μ > 0), the average of 20 of these observations is 6, and although the exact value of the other observation could not be determined, it was known to be greater than 15. Determine the M.L.E. of μ.

Identify the components of the statistical model (as defined in Definition 7.1.1) in Example 7.1.3.

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