Refer to the Following Payoff Table

question 76

Multiple Choice

Refer to the following payoff table:

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.
What is the unconditional probability that the research predicts S1?

• A) 0.32
• B) 0.4
• C) 0.44
• D) 0.56
• E) 0.6

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Definitions:

Written Goals

Specifically defined objectives that are documented in writing, serving as a guide to help individuals or organizations focus their efforts and measure progress.

Bureaucratic Structure

An organizational system characterized by a fixed hierarchy, specialization of labor, adherence to fixed rules, and a relationship of authority based on impersonal positions.

Hierarchy

An organization or structure where individuals or groups are arranged in a hierarchy based on their authority or status.

Divisions

The creation of distinct groups or categories within a society, often based on social, economic, or cultural differences.