Question
Consider the following payoff table that represents the profits earned for each alternative (A, B, and...
Consider the following payoff table that represents the
profits earned for each alternative (A, B, and C) under the states
of nature S1, S2, and S3.
S1 S2 S3
A $60 $145 $120
B $75 $125 $110
C $95 $85 $130
Refer to the payoff table. What is the expected value of
perfect information (EVPI)? Assume P(S1) = 0.5 and P(S2) = 0.25.
(Points : 2)
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