Journal of the Korean Data and Information Science Society
- Volume 19 Issue 3
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- Pages.995-1006
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- 2008
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- 1598-9402(pISSN)
Bayesian One-Sided Hypothesis Testing for Shape Parameter in Inverse Gaussian Distribution
- Kang, Sang-Gil (Department of Computer & Data Information, Sangji University) ;
- Kim, Dal-Ho (Department of Statistics, Kyungpook National University) ;
- Lee, Woo-Dong (Department of Asset Management, Daegu Haany University)
- Published : 2008.08.31
Abstract
This article deals with the one-sided hypothesis testing problem in inverse Gaussian distribution. We propose Bayesian hypothesis testing procedures for the one-sided hypotheses of the shape parameter under the noninformative prior. The noninformative prior is usually improper which yields a calibration problem that makes the Bayes factor to be defined up to a multiplicative constant. So we propose the objective Bayesian hypothesis testing procedures based on the fractional Bayes factor, the median intrinsic Bayes factor and the encompassing intrinsic Bayes factor under the reference prior. Simulation study and a real data example are provided.
Keywords
- Fractional Bayes Factor;
- Intrinsic Bayes Factor;
- Inverse Gaussian Distribution;
- One-sided Hypothesis Testing;
- Reference Prior;
- Shape Parameter