Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2026/iii/paper-207/3/b/ii/solution

Neyman allocation optimizes information and may allocate more patients to the arm whose Bernoulli variance is nearer its maximum at . The ethical allocation instead favors the arm with higher response probability. They coincide only for special parameter values; in general ethical gain is purchased with some loss of precision relative to Neyman allocation.

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