There Is an Option of Paying $100 to Have Research

question 29

Multiple Choice

There is an option of paying $100 to have research done to better predict which state of nature will occur.When the true state of nature is S1,the research will accurately predict S1 60% of the time.When the true state of nature is S2,the research will accurately predict S2 80% of the time.
-Given that the research is not done,what is the expected payoff using Bayes' decision rule?

• A)0
• B)29
• C)40
• D)75
• E)100

---

Definitions:

Symbol

Something that stands for or represents something else.

Culturally Agreed

Concepts, norms, or values that have been collectively accepted and recognized by a particular society or community.

Cultural Pluralism

A concept and practice that promotes the respect and coexistence of diverse cultural identities within society.

Cultural Melting Pot

A metaphor for a society where many different types of people blend together as one, often losing their original cultural identities.