Question: Need help understanding Bayes' Rule S3 Ai A2 67 85 80 79 50 State of Nature Alternative Si S2 Avg 112 -26 51 82 101

Need help understanding Bayes' Rule

Need help understanding Bayes' Rule S3 Ai A2 67

S3 Ai A2 67 85 80 79 50 State of Nature Alternative Si S2 Avg 112 -26 51 82 101 89.33 A3 85 72 A4 -50 90 110 Above is the payoff table from Problem 2 (profits in thousands of dollars) si 0 23 136 A2 3059 A3 27 18 30 A4 162 O Above is regret table from Problem 2 S2 S3 1 USE 2 ABOVE TABLES TO SOLVE Problem 3 Suppose that the probabilities for the states of nature in Problem 2 above are P(Si) = 0.6, P(S2) = 0.2, and P(S3) = 0.1. a) Which alternative should be selected under Bayes Rule? b) What is the expected value of perfect information for this decision

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