Refer to the following payoff table:

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.
What is the unconditional probability that the research predicts S1?
A) 0.32
B) 0.4
C) 0.44
D) 0.56
E) 0.6

Question

Refer to the following payoff table:

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.
What is the unconditional probability that the research predicts S1?
A) 0.32 
B) 0.4 
C) 0.44 
D) 0.56 
E) 0.6

Quizplus · Accepted Answer

The Answer of Refer to the following payoff table:

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.
What is the unconditional probability that the research predicts S1?
A) 0.32 
B) 0.4 
C) 0.44 
D) 0.56 
E) 0.6

Refer to the Following Payoff Table