High-level picture

“Bayesian Recipe”: high-level picture

  1. Construct a probability model including
    • random variables for what we will measure/observe
    • random variables for the unknown quantities
      • those we are interested in (“parameters”, “predictions”)
      • others that just help us formulate the problem (“nuisance”, “random effects”).
  2. Compute the posterior distribution (condition on the data)
  3. Use the posterior distribution to (decision theory):
    • make prediction (point estimate)
    • estimate uncertainty (credible intervals)
    • make a decision

Plan

  • First week: probability essentials (foundations for steps 1 and 2 of the Bayesian Recipe)
  • Second week: steps 1, 2, 3 for one specific discrete probability models
  • Third week and beyond: step 1, 2, 3 for arbitrary models

First step of the Recipe: “constructing a probability model”

  • What is a model?
  • What is a probability model?
  • Example (week 2): building a probability model for the rocket launch problem.

What is a model?

(Scientific) model: A simplification of reality amenable to mathematical investigation.

\[\text{Reality} \xrightarrow{\text{Art + Scientific method}} \text{Model} \xrightarrow{\text{Mathematics}} \text{Prediction}\]

  • In this course “mathematics” will be Bayesian analysis/probability theory.
  • Bayesian analysis/probability theory assume a model as starting point.
    • To create a first model is a bit of an art. It comes with data analysis experience.
    • Then after we start with an initial model we can improve it by checking predictions against reality.