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Large-Sample Bayesian Posterior Distributions for Probabilistic Sensitivity Analysis

Author

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  • Gordon B. Hazen

    (IEMS Department, Northwestern University, Evanston, IL, IEMS Dept, McCormick School, Evanston, IL, gbh305@lulu.it.northwestern.edu)

  • Min Huang

    (IEMS Department, Northwestern University, Evanston, IL)

Abstract

In probabilistic sensitivity analyses, analysts assign probability distributions to uncertain model parameters and use Monte Carlo simulation to estimate the sensitivity of model results to parameter uncertainty. The authors present Bayesian methods for constructing large-sample approximate posterior distributions for probabilities, rates, and relative effect parameters, for both controlled and uncontrolled studies, and discuss how to use these posterior distributions in a probabilistic sensitivity analysis. These results draw on and extend procedures from the literature on large-sample Bayesian posterior distributions and Bayesian random effects meta-analysis. They improve on standard approaches to probabilistic sensitivity analysis by allowing a proper accounting for heterogeneity across studies as well as dependence between control and treatment parameters, while still being simple enough to be carried out on a spreadsheet. The authors apply these methods to conduct a probabilistic sensitivity analysis for a recently published analysis of zidovudine prophylaxis following rapid HIV testing in labor to prevent vertical HIV transmission in pregnant women.

Suggested Citation

  • Gordon B. Hazen & Min Huang, 2006. "Large-Sample Bayesian Posterior Distributions for Probabilistic Sensitivity Analysis," Medical Decision Making, , vol. 26(5), pages 512-534, September.
    • Handle: RePEc:sae:medema:v:26:y:2006:i:5:p:512-534
    DOI: 10.1177/0272989X06290487
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    References listed on IDEAS

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    1. Gregory C. Critchfield & Keith E. Willard, 1986. "Probabilistic Analysis of Decision Trees Using Monte Carlo Simulation," Medical Decision Making, , vol. 6(2), pages 85-92, June.
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    Cited by:

    1. Gordon B. Hazen & Min Huang, 2006. "Parametric Sensitivity Analysis Using Large-Sample Approximate Bayesian Posterior Distributions," Decision Analysis, INFORMS, vol. 3(4), pages 208-219, December.

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