This paperback edition, a reprint of the 2001 edition, is a graduate-level textbook that introduces Bayesian statistics and decision theory. It covers both the basic ideas of statistical theory and some of the more modern and advanced topics of Bayesian statistics such as complete class theorems, the Stein effect, Bayesian model choice, hierarchical and empirical Bayes modeling, Monte Carlo integration including Gibbs sampling, and other MCMC techniques. It was awarded the 2004 DeGroot Prize by the International Society for Bayesian Analysis for setting a new standard for modern textbooks dealing with Bayesian methods, especially those using MCMC techniques, and is considered a worthy successor to earlier texts. Review of the second edition: "The text reads fluently and beautifully throughout, with light, good-humored touches that warm the reader's heart.".