Re:Objective Bayesian Hypothesis Testing
by Vecr on Friday August 23, 2024 @09:25AM
(#41328813)
Why would you care about that though? Calculate the odds between your hypotheses, not the probability you'd ever see one.
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The Bayesian stance is that you should not care. The frequentist stance is that a test that has a p-value of 1 is the worst possible.
My stance is that you should know why to care about either. Oh and that the thing you're calculating an expected value off should somehow contribute linearly to your profits/costs, averages do strange things to nonlinear functions.
Re:Objective Bayesian Hypothesis Testing
by LegionMammal978 on Friday August 23, 2024 @10:14AM
(#41329204)
Eh, even an expected value that's linear with respect to profits can end up with strange results like the St. Petersburg paradox. In general, naively maximizing it breaks down at the point where you stop being insensitive to the possible risks.
Re:Objective Bayesian Hypothesis Testing
by shiandow on Saturday August 24, 2024 @04:19AM
(#41336535)
One possible resolution to that paradox is to recognise that money is not linearly proportional to 'value'.
Re:Objective Bayesian Hypothesis Testing
by LegionMammal978 on Saturday August 24, 2024 @05:50PM
(#41341911)
If happiness is, e.g., log(money), then you can just adjust the game to have the payout be $2^2^n after the nth step. This cancels out the logarithm and recovers the paradox. The only way to get out of it with diminishing returns is to have happiness reach a finite asymptote.