Help with the statistics of Upper Limits?

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SUMMARY

This discussion focuses on the impact of systematic uncertainties on expected upper limits for signal strength in particle physics analyses. The likelihood model used is defined as L( N_{obs} | b(\theta ) + \mu s(\theta ) ), where N_{obs} represents observed events, b and s denote background and signal events, respectively, and \mu is the signal strength. The analysis reveals that adding nuisance parameters, particularly systematic uncertainties, increases the upper limit of the signal strength (\mu_{.95}), which complicates the interpretation of the signal amidst background noise. The conclusion emphasizes that while these uncertainties broaden the \mu distribution, they should not shift the expected signal strength if the methodology is sound.

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ChrisVer
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This could as well go to the statistics, but I am looking at it from particle physics point of view...
Why adding systematic uncertainties worsen the expected upper limits to the signal strength?
I am trying to find where the flaw enters in the following logic:

0. The model most analyses use is the following likelihood:
L( N_{obs} | b(\theta ) + \mu s(\theta ) ) = P(N_{obs} |b(\theta ) + \mu s(\theta ) ) U(\mu) \Pi_i Gaus(\theta_i | 0,1)
Where N_{obs} is the observed events, b/s are the background/signal expected events, \theta_i are the different nuisance parameters and \mu is called the signal strength. In a Bayesian approach, one has to also to feed in a prior distribution for the signal strength parameter, which is the U(\mu)- let's consider it Uniform. P(x|n) is the poisson probability to get x observed given the expectation of n, and Gaus is a way to represent the variation of the nuisance parameters (given you have symmetric errors).

1. In order for one to get the expected limits, they would set N_{obs}=N_{exp}=b.

2. Once they do it, they can start varying the background+signal uncertainties, \theta_{stat} (+\theta_{sys}) [these uncertainties don't affect the signal and background in the same way]

3. On the varied result, they would try to figure out what is the \mu so that the b'+\mu s' = N_{obs}

4. Doing that several times, you get a distribution for \mu (after you marginalize over the uncertainties) which is called the posterior pdf...

5. From μ-distribution get the 95-quantile point.

Now for some reason, adding nuisance parameters (such as \theta_{sys} on top of the statistical), moves the \mu_{.95} higher.
Is that because the uncertainties are not the same for bkg/signal?
Intuitively I can see how eg by subtracting the background from the observed result with higher uncertainties is going to give a more unclear picture of how much signal you allow in the game... but I don't see where this fits in the above logic.
 
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Nuisance parameters make your µ distribution broader. Ignoring asymmetries in the Poisson distribution, they should not shift the expected µ (which should be zero if your method is sound), you just get another uncertainty that gets added in quadrature.
 

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