This article outlines the application of the Bayesian method of parameter
estimation to situations where the probability of age misreporting is high, leading to
transfers of an individual from one age group to another. An essential requirement for
Bayesian estimation is prior distribution, derived for both perfect and imperfect age
reporting. As an alternative to the Bayesian methodology, a classical estimator based on
the maximum likelihood principle has also been discussed. Here, the age misreporting
probability matrix has been constructed using a performance indicator, which
incorporates the relative performance of estimators based on age when reported correctly
instead of misreporting. The initial guess of performance indicators can either be
empirically or theoretically derived. The method has been illustrated by using data on
Empowered Action Group (EAG) states of India from National Family Health Survey-3
(2005–2006) to estimate the total marital fertility rates. The present study reveals
through both a simulation and real-life set-up that the Bayesian estimation method has
been more promising and reliable in estimating fertility rates, even in situations where
age misreporting is higher than in case of classical maximum likelihood
estimates.