Paul: $"$We also have the prior probabilities for each state of nature, which were derived from an extensive analysis conducted by our company's economists. They reviewed historical data, market trends, and macroeconomic forecasts to estimate the likelihood of different cost of capital scenarios. Based on their analysis, the probabilities for high, moderate, and low costs of capital are $0\mathrm{.}2,0\mathrm{.}55,$ and $0\mathrm{.}25,$ respectively. We should incorporate these probabilities into our decision$-$making process to evaluate which strategy might yield the best expected outcome."