Bayesian sample size determination for the bounded linex loss function

Abstract

In this paper, we discuss optimum sample size determination for a bounded linex loss function (blinex). The linex loss function is often used when losses are asymmetric, but it has the disadvantage that it can only be used if the moment-generating function of the posterior distribution exists. Blinex loss has the advantage that it can always be calculated. Also many authors have argued that a bounded loss function is to be preferred. We have obtained the optimum sample size for a number of distributions when the cost of sampling is linear. The form of the posterior risk function does not allow an analytical solution so simulation is necessary.

Keywords:

• sample size
• linear cost
• posterior risk
• loss function