Question: Betsy Pitzer makes decisions according to Bayes decision rule. For her current problem, Betsy has constructed the following payoff table (in units of dollars): (a)

Betsy Pitzer makes decisions according to Bayes€™ decision rule. For her current problem, Betsy has constructed the following payoff table (in units of dollars):

(a) Which alternative should Betsy choose?
(b) Find EVPI.
(c) What is the most that Betsy should consider paying to obtain more information about which state of nature will occur?

State of Nature Alternative AT Prior probability S1 50 0 20 100 10 40 -100 -40 0.2 10 0.5 0.3

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