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CPS1201 M. Iftakhar Alam et al.
            selection based on the probability of success only. For any other choice of ,
            the design is expected to allocate the most efficacious doses to the cohorts
            and  to  give  precise  estimates  of  the  parameters  leading  to  the
            recommendation of the best dose for further study.

            An Example
                To explore the proposed methodology, we introduce an example which is
            based  on  the  continuation  ratio  doseresponse  model.  Simulation  studies,
            detailed in Section 2, are conducted to investigate the properties of the design.
                For  an  experimental  drug,  we  use  a  flexible  continuation  ratio  model
            (Agresti, 1990), which is given by

                        (,ϑ)                            (,ϑ)
                  log {  1   } =  +    and log {      2     } =  +  
                        (,ϑ)    1      2             1− (,ϑ)     3     4
                                                             2
                         0

                The above equations have the following solutions

                                                                  1
                                               (, ) =                 ,
                                               0
                                                                2 )(1+
                                                        (1+  1 +    3 + 
                                                                          4 )
                                                                    2
                                                                 1 + 
                                               (, ) =                 ,
                                               1
                                                                          4 )
                                                                2 )(1+
                                                        (1+  1 +    3 + 
                  and
                                                           3 + 
                                                            4
                                               (, ) =  1+   3 +  .
                                               2
                                                               4

                If we are at the kth stage in a trial, then  cohorts have been treated with
            doses selected from the set of ordered doses . Let  be the  × 1vector of
            doses with components   and let R be the   × 3 outcome matrix with  =
                                                                                    
                                     1
            ( ,  ,  ) as the th row,  =  1,2, . . . , k. Note that  ,  ,  = , where  is
                                                                0
               0
                  1
                      2
                                                                   1
                                                                       2
            the  number  of  subjects  in  a  cohort  treated  with  dose   The  successive
                                                                       
            components of   are the counts of neutral, successful and toxic responses for
                             
            the lth cohort. Thus, the likelihood function is
                                   
                                                
                                                                           
                                                              
                       (|, ) ∝ ∏{ ( , )} 10 { ( , )} 11 { ( , )} 12 .
                                                     1
                                                                      1
                                        0
                                                         1
                                           1
                       
                                                                   2
                                   =1

                Since  maximum  likelihood  estimation  is  unsuitable  because  of  small
            sample sizes at the early stages of a trial, we employ a Bayesian approach to
            estimate the parameters . The posterior estimate of  at the kth stage is
                                      ̂
                                            Θ
                                        =  ∫  ()   (|, )  ,
                                        
                                            ∫  ()   (|, )
                                            Θ
            where p(ϑ) is the joint prior distribution of the parameters. Let us assume that
            0  <  <  , 0  <  <  ,  <  <  , and  <  <  , and  that  the  joint
                                                                   4
                                    2
                                       1
                               4
                  2
                       1
                                                         3
                                                              3
                                            1
                                                 2
            prior distribution is uniform. Then we obtain
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