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Incorporating patients' characteristics in cost-effectiveness studies with clinical trial data: a flexible Bayesian approach.

Most published research on the comparison between medical treatment options merely compares the results (effectiveness and cost) obtained for each treatment group. The present work proposes the incorporation of other patient characteristics into the analysis. Most of the studies carried out in this context assume normality of both costs and effectiveness. In practice, however, the data are not always distributed according to this assumption. Alternative models have to be developed. In...

On maximum entropy priors and a most likely likelihood in auditing.

There are two basic questions auditors and accountants must consider when developing test and estimation applications using Bayes' Theorem: What prior probability function should be used and what likelihood function should be used. In this paper we propose to use a maximum entropy prior probability function MEP with the most likely likelihood function MLL in the Quasi-Bayesian QB model introduced by McCray (1984). It is defined on an adequate parameter. Thus procedure only needs an expected value...

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