A payoff table, the prior probabilities for three states of nature and the likelihood probabilities are shown below.
Payoff Table:
Prior Probabilities:
P( ) = 0.4, P( ) = 0.5, P( ) = 0.1.
Likelihood Probabilities:
A) Use the prior and likelihood probabilities to calculate the posterior probabilities for the experimental outcome .
B) Use the posterior probabilities from a. to recalculate the expected monetary value of each act, then determine the optimal act and the EMV*.
C) Use the prior and likelihood probabilities to calculate the posterior probabilities for the experimental outcome .
D) Use the posterior probabilities from c. to recalculate the expected monetary value of each act, then determine the optimal act and the EMV*.
E) Use the prior and likelihood probabilities to calculate the posterior probabilities for the experimental outcome .
F) Use the posterior probabilities from e. to recalculate the expected monetary value of each act, then determine the optimal act and the EMV*.
G) Use your answers to parts a. to f. to calculate the expected monetary value with additional information.
H) Calculate the expected value of sample information.
Correct Answer:
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