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#69 Why, When & How to use Bayes Factors, with Jorge Tendeiro

Learning Bayesian Statistics

CHAPTER

Base Factor and the Posterior Odds

The base factor allows us to compare the predictability of two models. It is a comparison of models by means of how well do they predict the data that we observed. The base factor converts the prior odds into the posterior odds. So for example, if when I compare the null hypothesis to an alternative hypothesis, if the base factor is equal to five, then that means that the data that I observed are five times as likely if the null hypothesis is true. That's not what a lot of people are doing. We need to ask people why do they do it like that? And this is just one example, but you can find more examples here and there.

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