Answer Session 1 Para 4
Here are results for 5000 iterations with non informative B(1,1) priors for pi and pi2
Node statistics
node mean sd MC error 2.5% median 97.5% start sample
diff 0.1852 0.1697 0.002972 -0.1475 0.1903 0.5185 1001 5000
node mean sd MC error 2.5% median 97.5% start sample
ratio 1.881 1.082 0.01731 0.6733 1.622 4.617 1001 5000
FOR diff
WHAT IS YOUR posterior MEAN?___0.1852_______
MEDIAN?____0.1903______
95% credible interval?______-0.1475 to 0.5185__________________
Campare these with the sample value of r2/N2 - r/N = 0.50 - 0.28 = 0.22
FOR ratio
WHAT IS YOUR posterior MEAN?_____1.881_____
MEDIAN?____1.622_____
95% credible interval?_______0.6733 to 4.617_________________
Is there evidence that these two proportions are different?___no, because the 95% credible interval for the difference includes 0_
And the 95% credible interval for the ratio includes 1
Make a sketch of the posterior density for the difference
With only 5000 samples this is a bit noisy. Since we used flat priors for the proportions the mode here should be the MLE which will be 0.22.
And for the ratio
Now much more skewed, with the right tail corresponding to very small values of pi.