ARTICLE
ABSTRACT
In this study the benefits arising from the use of the Bayesian approach to predictive modelling will be outlined and exemplified by a linear regression model and a logistic regression model. The impact of informative and noninformative prior on model accuracy will be examined and compared. The data from the Central Statistical Office of Poland describing unemployment in individual districts in Poland will be used. Markov Chain Monte Carlo methods (MCMC) will be employed in modelling.
KEYWORDS
Bayesian approach, regression models, a priori information, MCMC.
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