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QUESTION 9 Refer to the following payoff table: State of Nature S2 -40 100 0.4 S1 75 Alternative A1 A2 Prior Probability0.6 There is an option of paying $100 to have research done to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is done, what is the joint probability that the state of nature is si and the research predicts S1? A. 0.08 B. 0.16 C. 0.24 D. 0.36

QUESTION 9 Refer to the following payoff table: State of Nature S2 -40 100 0.4 S1 75 Alternative A1 A2 Prior Probability0.6 There is an option of paying $100 to have research done to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is done, what is the joint probability that the state of nature is si and the research predicts S1? A. 0.08 B. 0.16 C. 0.24 D. 0.36

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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QUESTION 9 Alternative A1 A2 Prior Probability0.6 Refer to the following payoff table: State of Nature S2 -40 100 0.4 S1 75 There is an option of paying $100 to have research done to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is done, what is the joint probability that the state of nature is S1 and the research predicts S1? А. О.08 В. О.16 C. 0.24 D. 0.36
Transcribed Image Text:QUESTION 9 Alternative A1 A2 Prior Probability0.6 Refer to the following payoff table: State of Nature S2 -40 100 0.4 S1 75 There is an option of paying $100 to have research done to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is done, what is the joint probability that the state of nature is S1 and the research predicts S1? А. О.08 В. О.16 C. 0.24 D. 0.36
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