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Based on the Following Payoff Table, Answer the Following The Bayes' Decision Rule Strategy Is:
A) Buy

Question 25

Multiple Choice

Based on the following payoff table, answer the following:
 Alternative  High  Low  Buy 9010 Rent 7040 Lease 6055 Prior Probability 0.40.6\begin{array} { | l | r | r | } \hline { \text { Alternative } } & \text { High } & { \text { Low } } \\\hline \text { Buy } & 90 & - 10 \\\hline \text { Rent } & 70 & 40 \\\hline \text { Lease } & 60 & 55 \\\hline \text { Prior Probability } & 0.4 & 0.6 \\\hline\end{array}
The Bayes' decision rule strategy is:


A) Buy.
B) Rent.
C) Lease.
D) High.
E) Low.

Correct Answer:

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