Assume that X, X2,... is a sequential sample from a B(1, 0) density, and that it is desired to test Ho: 0 = versus H:

Assume that X₁, X2,... is a sequential sample from a B(1, 0) density, and that it is desired to test Ho: 0 = versus H: 0 =. The decision loss is L(00, ao) = L(0, a₁) = 0, L(00, a₁) = 10, and L(01, a0) = 20, while the cost of each observation is

c, = 1.

(a) Letting o denote the prior probability of 0o, find d', the Bayes 1-truncated procedure.

(b) If o=, find d².