Outcomes are viewed as successes and failures . At each stage, based on accrued data and a model we select from one population or the other. Here, is taken to be the product of ind. It then becomes the posterior distribution. A suboptimal design attempts to do well by the same criteria, but is not as good as an optimal design.
Analysis involves evaluating a design.
The design may be the optimal Bayesian design or any suboptimal design. The efficiency of a design is its value on the primary criterion compared with the same criterion from an optimal design. Use computer to generate and evaluate both optimal and suboptimal designs. To generate optimal designs, we usually use Dynamic Programming . To evaluate design characteristics, we often use a new technique we call Path Induction .