A payoff table, the prior probabilities for two states of nature, and the likelihood probabilities are shown below.
Payoff Table:

\begin{array} { ccc }&\text { Alternative }\\\text { State of Nature }& a_{1} & a_{2} & a_{3}\\s_{1} & 20 & 28 & 33 \\s_{2} & 32 & 29 & 25\end{array}

Prior Probabilities:
P(

S _ { 1 }

) = 0.4, P(

S _ { 2 }

) = 0.6.
Likelihood Probabilities:

\begin{array}{ccc} & I_{1} & I_{2} \\s_{1} & 0.95 & 0.05 \\s_{2} & 0.08 & 0.92\end{array}

a. Use the prior and likelihood probabilities to calculate the posterior probabilities for the experimental outcome

I _ { 1 }

.
b. Use the posterior probabilities from a. to recalculate the expected monetary value of each act, then determine the optimal act and the EMV*.
c. Use the prior and likelihood probabilities to calculate the posterior probabilities for the experimental outcome

I _ { 2 }

.
d. Use the posterior probabilities from c. to recalculate the expected monetary value of each act, then determine the optimal act and the

\mathrm { EMV } ^ { * }

.
e. Use your answers to parts a. to d. to calculate the expected monetary value with additional information.
f. Calculate the expected value of sample information.

Which of the Following Statements Is Correct

Multiple Choice

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