Description
In your own words, explain how to obtain the “expected value of perfect information” for any payoff table, which has probabilities associated with each state of nature. Then, provide an example, drawing from any of the payoff tables in Problems 1-17 in the back of Chapter 12. If no probabilities are given for the states of nature, then assume equal likelihood.
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Quantitative Method
In your own words, explain how to obtain the “expected value of perfect information” for any payoff table,
which has probabilities associated with each state of nature. Then, provide an example, drawing from any of
the payoff tables in Problems 1-17 in the back of Chapter 12. If no probabilities are given for the states of
nature, then assume equal likelihood.
The Expected value of perfect information refers to the greatest amount of money a decision
making person would incur for extra information (Armstrong, Collopy, Graefe, & Green., May
15, 201...