Shannon Lipscomb & Associates (SLA) are producers of a new brand of personal computers. SLA is considering employing a market research firm to supply indicator information related to the demand for their computers. The information would consist of forecasts of light demand (I1) or heavy demand (I2) for SLA's computers. The following conditional probabilities reflect the accuracy of the market research firm's forecasts: 
a.Compute the posterior probabilities.
b.What decision should be taken if the market research firm forecasts light demand (I1)? Heavy demand (I2)?
c.Calculate the expected value of sample information.
d.Compute the expected value of perfect information.
Definitions:
Demand Shock
An unexpected event that causes a sudden increase or decrease in demand for goods or services in an economy.
Imported Oil
Oil that is brought into a country from foreign sources for use as a fuel or raw material.
Interest Rate
The expense, indicated as a percentage of the principal, that a borrower pays to a lender for accessing assets.
Market Participants
Individuals or institutions that engage in buying and selling securities within financial markets.
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