Suppose that we have an observable X that can take only two values, X1 and X2, for the situation in Exercise 11 5 7 The distribution of X depends on the states of nature and is as follows That is, P (X x1 1) 0 1 or P (X x2 3) 0 4, and so forth Suppose you observe X1 what is the updated prior What i...

Suppose that we have an observable X that can take only two values, X1 and X2, for

Question:

Suppose that we have an observable X that can take only two values, X1 and X2, for the situation in Exercise 11.5.7. The of X depends on the states of nature and is as follows:

That is, P (X = x1 | Î¸1) = 0.1 or P (X = x2 | Î¸3) = 0.4, and so forth.
Suppose you observe X1; what is the updated prior? What is the Bayes decision?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...