States of Nature Possible states of nature: car accident(a) “ no car accident”(na) Accident occurs with probability n does not with probability Tna j a na Accident causes a loss of slStates of Nature Possible states of Nature: – “car accident” (a) – “no car accident” (na). Accident occurs with probability a , does not with probability na ; a + na = 1. Accident causes a loss of $L