Bayes Vs Fischer
Another difference which one can keep in mind to understand the philosophical difference between Bayes and Fischer’s way.
In the context of parameter estimation,
Bayes World : Parameter is random and credible intervals are fixed and one talks about the probability that estimator is present in that interval.Probability being referred to the posterior probability of the parameter
Fischer’s world : Parameter is constant and confidence intervals are not fixed. For example 90% confidence interval means, if a large number of independent 90% confidence intervals are constructed, then approximately 90% of them will have the true parameter.
For some reason which I can’t understand, Baye’s is not taught in a lot of schools around the world and one gets too much of Fischer fundas that one fails to appreciate Baye’s approach.
Carol Alexander in her new book on risk management mentions that very few people in the risk mgmt profession use Baye’s and says that it is rather unfortunate that risk managers rely on Fischerian stats and make a mockery out of risk mgmt.