Bayes Factor Approach for Independence Test in Marshall and Olkin s Bivariate Exponential Model with Censored Data

In this paper, we consider fractional Bayes factor approach for independence test in Marshall and Olkin s bivariate exponential model with type I censored data. We use an improper prior for the parameters so that such prior is defined only up to arbitrary constant which affects the values of Bayes factors. So we compute the fractional Bayes factor proposed by O Hagan(1995) to compensate for that arbitrariness. We propose Bayesian testing procedure for independence based on fractional Bayes factor and calculate the posterior probabilities for the hypotheses, respectively. And we give a numerical examples to illustrate our procedure.