Bayesian Economics Through Numerical Methods

Аннотация

Bayesian statistics at its most basic level is an approach to statistical problems that seeks to optimally combine information from two sources: the information the researcher believes at the start of the research process and the information contained in the data. Bayes’ theorem is essentially a rule for howto combine these two sources of information into a single set of (updated) information concerning the parameters or hypotheses of interest. There are a number of advantages to this approach as opposed to the alternative, sampling theory, approach to statistics.