=e. Now suppose that the opportunity is offered to provide information that will tell you with certainty

Question:

=e. Now suppose that the opportunity is offered to provide information that will tell you with certainty which state of nature will occur (perfect information). What is the maximum amount you should pay for the information? Assuming you will obtain the information, how should this information be used to choose an alternative? What is the resulting expected payoff (excluding the payment)?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: