Abstract
From a statistical perspective, the Fieller–Creasy problem which involves inference about the ratio of two normal means has been quite challenging. In this study, we consider some solutions to this problem, based on an objective Bayesian model selection procedure. First, we develop the objective priors for testing the ratio of two normal means, based on measures of divergence between competing models. We then propose the intrinsic priors and the fractional priors for which the Bayes factors and model selection probabilities are well defined. In addition, we prove that the Bayes factors based on divergence-based priors, as well as intrinsic and fractional priors, are consistent for large sample sizes. Finally, we derive the Bayesian reference criterion from the Bayesian decision theory framework, based on the intrinsic discrepancy loss function. The behaviors of the Bayes factors are compared by undertaking a simulation study and using a case study example.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
