# Probabilities with Possible States of Nature

Suppose that you are given a decision situation with three possible state of nature: s1, s2, and s3. The prior probabilities are P(s1) =.1, P(s2) = .6, and P(s3) = .3. With sample information I, P(I|s1) =.15, P(I|s2) = .2, and P(I|s3) = .1.

Compute P(s1|I)

Compute P(s2|I)

Compute P(s3|I)

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#### Solution Preview

Suppose that you are given a decision situation with three possible state of nature: s1, s2, and s3. The prior probabilities are P(s1) =.1, P(s2) = .6, and P(s3) = .3. With sample ...

#### Solution Summary

The solution determines the probabilities with possible states of nature.

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