Question: Suppose that you are given a decision situation with three possible states of nature: s1, s2, and s3. The prior probabilities are P(s1) 5 0.2,

Suppose that you are given a decision situation with three possible states of nature: s1, s2,

and s3. The prior probabilities are P(s1) 5 0.2, P(s2) 5 0.5, and P(s3) 5 0.3. With sample

information I, P(I Z s1) 5 0.1, P(I Z s2) 5 0.05, and P(I Z s3) 5 0.2. Compute the revised or

posterior probabilities: P(s1 Z I), P(s2 Z I), and P(s3 Z I).

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