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Does additional data always reduce posterior variance?

14 hours ago
  • Additional data does not always reduce uncertainty; surprising data can increase posterior variance in Bayesian models.
  • In a beta-binomial model, observing a success increases posterior variance if the prior odds against success are more than 2:1.
  • In a normal-normal model, posterior variance always decreases regardless of the observation's surprise level.
  • The third moment of a distribution determines whether positive or negative surprises raise uncertainty in continuous learning scenarios.
  • References and proofs show that uncertainty increase with surprising signals is mathematically established but not widely known.