ATLASResearch
methods
Quantitative/ Analysis

Bayesian estimation

Update explicit assumptions into posterior uncertainty

Bayesian estimation combines a prior distribution with a likelihood to produce a posterior distribution over unknown quantities. Credible intervals and posterior predictions summarise model-conditional uncertainty. Priors can regularise estimates and encode relevant information, but require explanation and sensitivity analysis. Estimation differs from Bayes-factor model comparison, which addresses a different question.

WHEN IT FITS

Use when probabilistic parameter statements, hierarchical pooling or prior information suit the research question. Specify a defensible generative model and allocate time to prior checks, computation and sensitivity analysis.

Strengths

  • Provides coherent joint uncertainty and predictions
  • Allows regularisation and partial pooling

Limitations

  • Results can be sensitive to priors and likelihood choices
  • Complex models require careful computation and diagnostics

Know the boundary

A credible interval is conditional on the model; Bayesian analysis does not rescue an uninformative or biased design.

USED ACROSS
Banking & financeBusiness & MBAPsychologyComputer scienceEducation