Decision Making with the Aid of a Subjective Prior Distribution.
Abstract
This paper discusses a methodology to establish a subjective prior distribution via an interactive computer program on a CRT. The program asks specific carefully worded questions. The answers to these questions are checked for logical consistency and are translated into fractiles of a subjective probability distribution. The fractiles as well as other summary measures (like the mean and variance) are printed out. In order to find a conjugate prior distribution for a Bayesian treatment, the mathematical form of a possible conjugate prior needs to be ascertained. The paper illustrates how the parameters of a lognormal distribution might be obtained from the fractiles of the subjectively derived prior. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1976
- Accession Number
- ADA034799
Entities
People
- Chi-yuan Lin
- George J. Schick
Organizations
- University of Southern California