Question: This is a question about probability and I stuck on it. Please give me some help! Thank you! You should provide explanations for all your
This is a question about probability and I stuck on it. Please give me some help! Thank you!

You should provide explanations for all your answers. While you are welcome to use Bayes' formula, you are not required to do so. Consider an information cascade problem with asymmetric signals. There are two states of the world, Y and N, with prior belief that P(Y) = P(N) = 0.5. Ann's utility when she takes action TA in state Y or action 77A in state N is 1; it is 0 otherwise. (a) [3pt] Suppose Ann has not received any signal about the true state of the world and must base her action only on the information given above. What is Ann's optimal action? Explain. Suppose An\" receives signals in and iii with probabilities mm = 0.25.p
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