You are the CEO of a small financial forecasting company. You have decided to adopt a Bayesian approach to data analysis and modelling. When you announce this new policy, your staff are unhappy and unconvinced, as they are used to a NHST approach. You stress that the Bayesian approach has several key advantages, including which of the following.
A) You can evaluate the likelihood of the null hypothesis being true.
B) You can evaluate statistical significance using p-values.
C) You can reject null hypotheses without any data collection.
D) You can evaluate complex statistical models without data.

Question

Quizplus · Accepted Answer

The Bayesian approach allows for the evaluation of the likelihood of the null hypothesis being true, which is not possible with NHST. This can provide a more nuanced and informative analysis of the data. B is incorrect as p-values are typically used in NHST, and C and D are incorrect as they do not accurately reflect the advantages of the Bayesian approach.

You Are the CEO of a Small Financial Forecasting Company