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Simplifying Life Through Bayes: Hints for Practitioners New to Bayesian Inference

Summary: [This abstract is based on the authors' abstract.] This paper explains why it is important to understand Bayesian techniques and how they are advantageous, even at a fundamental level, over the more traditionally taught classical, or frequentist-based, statistical techniques. The authors provide a brief introduction to the Bayesian approach and present an example of a scenario exhibiting some of the beneficial properties of Bayesian methods, including insights gained from their application in industry to overcome classical statistics-based problems. This example shows how Bayesian methods enable straightforward incorporation of constraints that result in sensible estimates, compared with ad hoc, and at times misleading or useless, classical approaches.

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  • Topics: Statistics, Total Quality Management
  • Keywords: Bayesian methods, Binomial distribution, Taguchi method, Loss functions, Inference procedures, Posterior, Constraints
  • Author: Tuyl, Frank; Howley, Peter
  • Journal: Quality Management Journal