Precision

Precision matrix

Precision matrix
  1. What is precision matrix used for?
  2. What is precision in probability?
  3. What is precision in distribution?
  4. What is precision in econometrics?

What is precision matrix used for?

One particular use of the precision matrix is in the context of Bayesian analysis of the multivariate normal distribution: for example, Bernardo & Smith prefer to parameterise the multivariate normal distribution in terms of the precision matrix, rather than the covariance matrix, because of certain simplifications ...

What is precision in probability?

Precision refers to the amount of information that is conveyed by a number in terms of its digits; it shows the closeness of two or more measurements to each other. It is independent of accuracy.

What is precision in distribution?

Precision is one of the two natural parameters of the normal distribution. That means that if you want to combine two independent predictive distributions (as in a Generalized Linear Model), you add the precisions. Variance does not have this property.

What is precision in econometrics?

Precision is the accuracy of an estimator as measured by the inverse of its variance. The standard errors are the square root of that variance.

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