The Probability of the States of Nature, After Use of Bayes

question 15

Multiple Choice

The probability of the states of nature, after use of Bayes' theorem to adjust the prior probabilities based on given indicator information, is called _____.

• A) marginal probability
• B) conditional probability
• C) posterior probability
• D) None of the answers is correct.

---

Definitions:

Frustrated Contract

A contract that, due to unforeseeable circumstances beyond the control of the parties, cannot be fulfilled, leading to its termination without fault.

Anticipatory Breach

An act where one party ahead of time indicates that they will not fulfill their contractual obligations, allowing the other party to consider the contract broken.

Loss Apportionment

The process of dividing the responsibility for financial losses among different parties, typically in accordance with their fault or liability.

Frustration Availability

Refers to situations where the doctrine of frustration can be applied to release parties from their contractual obligations.