Constrained Bayesian Method for Testing Equi-Correlation Coefficient

The problem of testing the equi-correlation coefficient of a standard symmetric multivariate normal distribution is considered. Constrained Bayesian and classical Bayes methods, using the maximum likelihood estimation and Stein’s approach, are examined. For the investigation of the obtained theoreti...

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Bibliographic Details
Main Authors: Kartlos Kachiashvili, Ashis SenGupta
Format: Article
Language:English
Published: MDPI AG 2024-10-01
Series:Axioms
Subjects:
Online Access:https://www.mdpi.com/2075-1680/13/10/722
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Summary:The problem of testing the equi-correlation coefficient of a standard symmetric multivariate normal distribution is considered. Constrained Bayesian and classical Bayes methods, using the maximum likelihood estimation and Stein’s approach, are examined. For the investigation of the obtained theoretical results and choosing the best among them, different practical examples are analyzed. The simulation results showed that the constrained Bayesian method (CBM) using Stein’s approach has the advantage of making decisions with higher reliability for testing hypotheses concerning the equi-correlation coefficient than the Bayes method. Also, the use of this approach with the probability distribution of linear combinations of chi-square random variables gives better results compared to that of using the integrated probability distributions in terms of providing both the necessary precisions as well as convenience of implementation in practice. Recommendations towards the use of the proposed methods for solving practical problems are given.
ISSN:2075-1680