The Probabilities of States of Nature After Revising the Prior

question 29

Multiple Choice

The probabilities of states of nature after revising the prior probabilities based on given indicator information are _____.

• A) the expected probabilities
• B) the posterior probabilities
• C) the prior probabilities
• D) None of the answers is correct.

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Definitions:

Temporary Accounts

Accounts in financial accounting that are closed at the end of each accounting period, including income, expense, and withdrawal accounts. They are used to track transactions within a specific period and are reset to zero at the start of a new period to begin tracking new transactions.

Total Debits

The sum of all debit entries in a financial account or ledger, representing expenses or assets.

Closing Process

The procedure used in accounting to close out accounts at the end of an accounting period, summarizing revenues and expenses and showing net income or loss.

Income Summary

An account to which all income statement account balances are transferred at the end of an accounting period to determine the net profit or loss.