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 statistical significance using p-values.
B)You can reject null hypotheses without any data collection.
C)You can evaluate the likelihood of the null hypothesis being true.
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 in the NHST approach. This can provide more nuanced and informative conclusions about the data being analyzed. None of the other options listed are advantages of the Bayesian approach.

You Are the CEO of a Small Financial Forecasting Company