Question: 1 . Using Bayes Theory, determine the appropriate action for the company. 2 . Find the posterior probabilities.. 3 . How much expected profit Cactus

1. Using Bayes Theory, determine the appropriate action for the company.
2. Find the posterior probabilities..
3. How much expected profit Cactus Petroleum would get if they have perfectinformation?
4. What would be the maximum amount you would be willing to pay for theseismic test, such that you would prefer to conduct it and then decide?
5. How much expected additional profit can be derived from the seismic testing?
6. What is the expected net gain from the seismic test?
7. What recommendations can you give to Cactus Petroleum?
1. Using Bayes Theory, determine the appropriate action for the company.

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