There is an option of paying $100 to have research done to better predict which state of nature will occur.When the true state of nature is S1,the research will accurately predict S1 60% of the time.When the true state of nature is S2,the research will accurately predict S2 80% of the time.
-What is the expected value of perfect information?
A)40
B)45
C)75
D)85
E)100

Question

There is an option of paying $100 to have research done to better predict which state of nature will occur.When the true state of nature is S1,the research will accurately predict S1 60% of the time.When the true state of nature is S2,the research will accurately predict S2 80% of the time.
-What is the expected value of perfect information?
A)40 
B)45 
C)75 
D)85 
E)100

Quizplus · Accepted Answer

The Answer of  There is an option of paying $100 to have research done to better predict which state of nature will occur.When the true state of nature is S1,the research will accurately predict S1 60% of the time.When the true state of nature is S2,the research will accurately predict S2 80% of the time.
-What is the expected value of perfect information?
A)40 
B)45 
C)75 
D)85 
E)100

There Is an Option of Paying $100 to Have Research