Fig. 1.
Decision threshold |$\gamma^\pi$| for different prior specifications (left), and BF (right), on the logarithmic scale. The sample size is assumed equal to 100 in both plots. For the test decision threshold plot, the sampling prior variance is fixed at |$\sigma^2_s=1/50$|. The dashed vertical line corresponds to the point at which the sampling prior and the informative prior coincide. In the BF plot, the dashed horizontal line corresponds to |$\log(c'_0/c'_1)$|, |$c_0'=0.05,$| and |$c_1'=0.95$|, i.e., the log- (BF) threshold for rejection, see Equation (2.6).