Consider a Decision Making Problem with Three States of Nature

Multiple Choice

Consider a decision making problem with three states of nature: S1, S2, and S3, for which P(S1) = .1 and P(S2) = .3.Suppose also that there are two possible sample indicators, I1 and I2, and the following conditional probabilities hold: P(I1|S1) = .2, P(I1|S2) = .4, and P(I1|S3) = .6.The P(S2|I2) is:

A) .18
B) .24
C) .36
D) .50