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A Revisit to Estimation of the Precision Matrix of the Wishart Distribution

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Tatsuya Kubokawa (Faculty of Economics, The University of Tokyo)
Abstract

The estimation of the precision matrix of the Wishart distribution is one of classical problems studied in a decision-theoretic framework and is related to estimation of mean and covariance matrices of a multivariate normal distribution. This paper revisits the estimation problem of the precision matrix and investigates how it connects with the theory of the covariance estimation from a decision-theoretic aspect. To evaluate estimators in terms of risk functions, we employ two kinds of loss functions: the non-scale-invariant loss and the scale-invariant loss functions which are induced from estimation of means. Using the same methods as in the estimation of the covariance matrix, we derive not only the James-Stein type of estimators improving on the Stein type one under the non-scale-invariant loss. It is observed that dominance properties given in the estimation of the covariance matrix do not necessarily hold in our setup under the non-scale-invariant loss, but still hold relative to the scale-invariant loss. The simulation studies are given, and estimators having superior risk performances are proposed.

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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-264.

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Length: 22 pages
Date of creation: Feb 2004
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Handle: RePEc:tky:fseres:2004cf264

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  1. Sheena, Yo & Takemura, Akimichi, 1992. "Inadmissibility of non-order-preserving orthogonally invariant estimators of the covariance matrix in the case of Stein's loss," Journal of Multivariate Analysis, Elsevier, vol. 41(1), pages 117-131, April. [Downloadable!] (restricted)
  2. Haff, L. R., 1979. "An identity for the Wishart distribution with applications," Journal of Multivariate Analysis, Elsevier, vol. 9(4), pages 531-544, December. [Downloadable!] (restricted)
  3. Perron, François, 1997. "On a Conjecture of Krishnamoorthy and Gupta, ," Journal of Multivariate Analysis, Elsevier, vol. 62(1), pages 110-120, July. [Downloadable!] (restricted)
  4. Zheng, Z., 1986. "On estimation of matrix of normal mean," Journal of Multivariate Analysis, Elsevier, vol. 18(1), pages 70-82, February. [Downloadable!] (restricted)
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