Let X_1, ... X_6 be a random sample from a random distribution that is conditionally Bernoulli with parameter p for a given p. The parameter p itself follows a BETA(2, 1). Construct a Bayes hypothesis to test the null hypothesis of p < 1/2 against the alternative hypothesis of p > 1/2. What will be your conclusion on this test if the sample average is 0.5?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Let X_1,
...
X_6 be a random sample
from a random distribution that is
conditionally Bernoulli with parameter p
for a given p. The parameter p itself
follows a BETA(2, 1). Construct a Bayes
hypothesis to test the null hypothesis of p
< 1/2 against the alternative hypothesis
of p > 1/2. What will be your conclusion
on this test if the sample average is 0.5?
Transcribed Image Text:Let X_1, ... X_6 be a random sample from a random distribution that is conditionally Bernoulli with parameter p for a given p. The parameter p itself follows a BETA(2, 1). Construct a Bayes hypothesis to test the null hypothesis of p < 1/2 against the alternative hypothesis of p > 1/2. What will be your conclusion on this test if the sample average is 0.5?
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