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Refer to the following payoff table: State of Nature Alternative S1 S2 A1 75 -40 A2 100 Prior Probability 0. 6 0.4 There is an
Refer to the following payoff table: State of Nature Alternative S1 S2 A1 75 -40 A2 100 Prior Probability 0. 6 0.4 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 S2?
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