Irreconcilability of P-value and Bayesian measure in two-sided hypothesis: Pareto distribution with the presence of nuisance parameter. Issue 8 (17th April 2016)

• Record Type: Journal Article
• Authors: Chinipardaz, Rahim; Mehri, Khadijeh
• Is Part Of: Communications in statistics. Volume 45:Issue 8(2016)
• Page Start: 2438
• Page End: 2449
• Publication Date: 2016-04-17
• Subjects: P-value -- Nuisance parameter -- Lower bound of posterior probability.; 62F15 -- 62F03; Mathematical statistics -- Periodicals; Mathematics; Statistics; 519.2
• DOI: 10.1080/03610926.2014.881495
• Languages: English
• ISSNs: 0361-0926

Abstract

Abstract: This article is concerned with the comparison of Bayesian and classical testing of a point null hypothesis for the Pareto distribution when there is a nuisance parameter. In the first stage, using a fixed prior distribution, the posterior probability is obtained and compared with the P-value. In the second case, lower bounds of the posterior probability of H 0, under a reasonable class of prior distributions, are compared with the P-value. It has been shown that even in the presence of nuisance parameters for the model, these two approaches can lead to different results in statistical inference.