Shannon Lipscomb & Associates (SLA) are producers of a new brand of personal computers. SLA is considering employing a market research firm to supply indicator information related to the demand for their computers. The information would consist of forecasts of light demand (I1) or heavy demand (I2) for SLA's computers. The following conditional probabilities reflect the accuracy of the market research firm's forecasts:
a.Compute the posterior probabilities.
b.What decision should be taken if the market research firm forecasts light demand (I1)? Heavy demand (I2)?
c.Calculate the expected value of sample information.
d.Compute the expected value of perfect information.
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