A farmer has to decide whether or not to plant his crop earl

A farmer has to decide whether or not to plant his crop early.if he plants early and no late frost occurs,he will gain $5000 in extra harvest.If he plants early and a late dose occur,he will lose $2000 as the cost of reseeding. if he doesn\'t plant early his gain will $0.consulting the weather service,he finds that the chance of a late frost is about 0.6.

(b)What is the Bayes action?

(c)What is the minimax nonrandomized action?

Solution

loss matrix is the matrix that show how the loss of the problem will be distributed

prior distribution is the distributiion that will show you the porbability to prior

bayes action

when you use probability when you have data of events before