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Empirical Bayes Method
A statistical approach that combines the strengths of both Bayesian and frequentist methods, often used in hierarchical models.
Implications
A statistical technique that combines empirical data with prior information or assumptions to improve the accuracy of estimates, often used in areas like decision-making, marketing analytics, and machine learning.
Example
Example: A marketing analyst uses the empirical Bayes method to refine customer lifetime value predictions by combining historical purchase data with broader industry trends.
Related Terms
Different from traditional Bayesian methods, empirical Bayes uses data to estimate the prior distribution, making it more adaptable to real-world applications where prior information is uncertain.
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