Reference - 12

question 21

Multiple Choice

Reference - 12.2: Use the data below and Bayes' theorem to answer questions 34-35.

-Reference - 12.2: Which of the following would be the posterior probabilities, P(Sj|U) ?

• A) 0.83, 0.12, and 0.05
• B) 0.49, 0.07, and 0.03
• C) 0.47, 0.49, and 0.04
• D) 1.00, 0.59, and 1.00

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Definitions:

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision to pursue a certain action.

Economic Efficiency

The optimal distribution of resources in a manner that maximizes the total utility to all individuals in the economy.

Governmental Direction

Guidance or regulation provided by government bodies to influence or control certain activities, industries, or economic policies.

Roundabout Production

An economic concept that refers to more capital-intensive and indirect methods of production, which, although initially more time-consuming and costly, lead to greater efficiencies and outputs in the long run.