November 1, 2009

Statisticians who know economics

When I was reading the text of my statistics course, I came across a sentence that reads:

This relationship between reliability and sample size indicates that there are, to use a phrase from economics, diminishing returns to increasing the size of a sample. It seldom pays to take samples that are massively large.

I am not sure whether it was Freund or Perles who came up with this. I guess one of them probably had taken a course in economics before; or he had done research in economics, which is vastly probable - at least there is a sub-discipline in economics called Bayesian.

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