Improved weather indices based Bayesian regression model for forecasting crop yield

As agriculture is the backbone of the Indian economy, Government needs a reliable forecast of crop yield for planning new schemes. The most extensively used technique for forecasting crop yield is regression analysis. The significance of parameters is one of the major problems of regression analysis. Non-significant parameters lead to absurd forecast values and these forecast values are not reliable. In such cases, models need to be improved. To improve the models, we have incorporated prior knowledge through the Bayesian technique and investigate the superiority of these models under the Bayesian framework. The Bayesian technique is one of the most powerful methodologies in the modern era of statistics. We have discussed different types of prior (informative, non-informative and conjugate priors). The Markov chain Monte Carlo (MCMC) methodology has been briefly discussed for the estimation of parameters under Bayesian framework. To illustrate these models, production data of banana, mango and wheat yield data are taken under consideration. We compared the traditional regression model with the Bayesian regression model and conclusively infer that the models estimated under Bayesian framework provided superior results as compared to the models estimated under the classical approach.