Prior probabilities are the probabilities of the states of nature
A)after obtaining sample information
B)prior to obtaining of perfect information
C)prior to obtaining sample information
D)after obtaining perfect information

Question

Quizplus · Accepted Answer

Prior probabilities are the initial probabilities assigned to the states of nature before any sample information or data is collected. These probabilities are based on subjective or objective knowledge about the problem or situation. Once sample information or data is collected, these prior probabilities can be updated to posterior probabilities using Bayes' theorem. Therefore, the correct choice is C, prior to obtaining sample information.

Prior Probabilities Are the Probabilities of the States of Nature