The Likelihood of Various Stock Market Return Distributions, Part 1 Principles of Inference
Document Type
Article
Publication Date
1-1-1996
Abstract
This is the first of two articles which apply certain principles of inference to a practical, financial question. The present article argues and cites arguments which contend that decision making should be Bayesian, that classical (R. A. Fisher, Neyman-Pearson) inference can be highly misleading for Bayesians as can the use of diffuse priors, and that Bayesian statisticians should show remote clients with a variety of priors how a sample implies shifts in their beliefs. We also consider practical implications of the fact that human decision makers and their statisticians cannot fully emulate Savage's rational decision maker.
DOI
10.1007/BF00056153
MSU Digital Commons Citation
Markowitz, Harry M. and Usmen, Nilufer, "The Likelihood of Various Stock Market Return Distributions, Part 1 Principles of Inference" (1996). Department of Accounting and Finance Faculty Scholarship and Creative Works. 122.
https://digitalcommons.montclair.edu/acctg-finance-facpubs/122
