Abstract:
:We consider the sequential estimation of p, the probability of success in an infinite sequence of Bernoulli trials, when the loss incurred in stopping after n trials and estimating p by some function delta(n) of the first n outcomes is taken to be [Formula: see text] The loss due to error of estimation is thus the symmetrized relative squared error, which is appropriate in applications when p may be near 0 or 1.We begin by finding a heuristic procedure for sequentially determining the sample size n which, with the usual terminal estimator of p, performs well for any fixed 0 < p < 1 as the cost per observation c --> 0. For any fixed c > 0, however, this procedure is poor as p --> 0 or 1. To remedy this defect, the uniform prior on p is introduced. The corresponding Bayes procedure is found and is shown to have a Bayes risk approximately 2pi radicalc as c --> 0.
journal_name
Proc Natl Acad Sci U S Aauthors
Cabilio P,Robbins Hdoi
10.1073/pnas.72.1.191subject
Has Abstractpub_date
1975-01-01 00:00:00pages
191-3issue
1eissn
0027-8424issn
1091-6490journal_volume
72pub_type
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