Exhibit 20-2
Below you are given a payoff table involving three states of nature and two decision alternatives. The probability that S 1 will occur is 0.1; the probability that S 2 will occur is 0.6; and the probability that S 3 will occur is 0.3.
-Refer to Exhibit 20-2. The expected value of perfect information equals
A)12
B)4
C)37
D)29

Question

Exhibit 20-2
Below you are given a payoff table involving three states of nature and two decision alternatives.  The probability that S 1 will occur is 0.1; the probability that S 2 will occur is 0.6; and the probability that S 3 will occur is 0.3.
-Refer to Exhibit 20-2. The expected value of perfect information equals
A)12 
B)4 
C)37 
D)29

Quizplus · Accepted Answer

The Answer of Exhibit 20-2
Below you are given a payoff table involving three states of nature and two decision alternatives.  The probability that S 1 will occur is 0.1; the probability that S 2 will occur is 0.6; and the probability that S 3 will occur is 0.3.
-Refer to Exhibit 20-2. The expected value of perfect information equals
A)12 
B)4 
C)37 
D)29

Exhibit 20-2 Below You Are Given a Payoff Table Involving Three States