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There Is an Option of Paying $100 to Have Research

Question 29

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  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. -Given that the research is not done,what is the expected payoff using Bayes' decision rule? A) 0  B) 29  C) 40  D) 75  E) 100 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.
-Given that the research is not done,what is the expected payoff using Bayes' decision rule?


A) 0
B) 29
C) 40
D) 75
E) 100

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