1. Emily, Car, Stock Market, Sweepstakes, Vacation and Bayes.
Emily is taking Bayesian Analysis course. She believes she will get an A with probability 0.6, a B with probability 0.3, and a C or less with probability 0.1. At the end of semester, she will get a car as a present form her uncle depending on her class performance. For getting an A in the course Emily will get a car with probability 0.8, for B with probability 0.5, and for anything less than B, she will get a car with probability of 0.2. These are the probabilities if the market is bullish. If the market is bearish, the uncle is less likely to make expensive presents, and the above probabilities are 0.5, 0.3, and 0.1, respectively. The probabilities of bullish and bearish market are equal, 0.5 each. If Emily gets a car, she would travel to Redington Shores with probability 0.7, or stay on campus with probability 0.3. If she does not get a car, these two probabilities are 0.2 and 0.8, respectively. Independently, Emily may be a lucky winner of a sweepstake lottery for a free air ticket and vacation in hotel Sol at Redington Shores. The chance to win the sweepstake is 0.001, but if Emily wins, she will go to vacation with probability of 0.99, irrespective of what happened with the car.
After the semester was over you learned that Emily is at
Redington Shores.
What is the probability that the market was bearish?
1. Emily, Car, Stock Market, Sweepstakes, Vacation and Bayes. Emily is taking Bayesian Analysis course. She...
4. (30 points) Amia goes grocery shopping at either Kroeger (K), Busch's (B), or Plum Market (P). If she goes to Kroeger today, next time she will either go to Kroeger again with probability 0.2, she will go to Busch's with probability 0.5, or otherwise she will go to Plum Market. If she goes to Busch's today, then she will go to Kroeger, Busch's, or Plum Market next time with probabilities 0.4, 0.2, and 0.4, respectively. If she goes to...