Custom Home Designs
Three different designs are being considered for new custom homes,and profits will depend on the combination of the custom home design and market condition.The following payoff table summarizes the decision situation,with amounts in millions of dollars. Assume that the following probabilities are assigned to the three market conditions: P(s 1 )= 0.1,P(s 2 )= 0.6,and P(s 3 )= 0.3.
-{Custom Home Designs Narrative} What is the most the firm would be willing to pay for a research study designed to reduce its uncertainty about market conditions?

Question

Custom Home Designs 
Three different designs are being considered for new custom homes,and profits will depend on the combination of the custom home design and market condition.The following payoff table summarizes the decision situation,with amounts in millions of dollars.  Assume that the following probabilities are assigned to the three market conditions: P(s 1 )= 0.1,P(s 2 )= 0.6,and P(s 3 )= 0.3. ​ ​
-{Custom Home Designs Narrative} What is the most the firm would be willing to pay for a research study designed to reduce its uncertainty about market conditions?

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The Answer of Custom Home Designs 
Three different designs are being considered for new custom homes,and profits will depend on the combination of the custom home design and market condition.The following payoff table summarizes the decision situation,with amounts in millions of dollars.  Assume that the following probabilities are assigned to the three market conditions: P(s 1 )= 0.1,P(s 2 )= 0.6,and P(s 3 )= 0.3. ​ ​
-{Custom Home Designs Narrative} What is the most the firm would be willing to pay for a research study designed to reduce its uncertainty about market conditions?