In the Nomenclature of Bayes' Rule, Which of the Following

question 12

Multiple Choice

In the nomenclature of Bayes' Rule, which of the following are probabilities that are conditioned on information that is obtained?

• A) Prior probabilities
• B) Posterior probabilities
• C) Marginal probabilities
• D) Objective probabilities
• E) Subjective probabilities

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Definitions:

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Future Value

The amount of money in the future that an amount of money today will yield, given prevailing interest rates

Risk-averse Individuals

People who prefer to avoid risk and would rather accept a lower expected return on an investment than subject themselves to higher volatility and potential loss.

Comparable Bad Things

Situations or items that have similarly negative attributes or impacts, allowing for a comparison of their undesirability.