EXAMINATION THE PERFORMANCES OF MAXIMUM LIKELIHOOD METHOD AND BAYESIAN APPROACH IN ESTIMATING SALES LEVEL

Resumen

The method of maximum likelihood and Bayesian method are widely used in data processing, not only in economics but also in other fields of research. In order to identify which approach has better performances, these methods are analyzed on the selected economic data. By comparing the estimated values obtained by applying the maximum likelihood method and Bayesian method on the data that was taken from the company CaliVita Int., it was concluded that the Bayesian inference with informative priors gives more accurate estimates.