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:

Temperament Differences

Refers to the variations in emotional and behavioral tendencies among individuals, often considered to be innate.

Cultures

The distinctive ideas, customs, social behaviors, and artifacts of a society or community.

Age Group

A classification of people based on their age, typically used for demographic, marketing, or study purposes.

Sequential Learning Processes

The method of acquiring knowledge or skills through a series of steps followed one after another.