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3 point QUESTION 2 Consider the following problem for the payoff table (Profit $) with four decision alternatives and three states of nature: S1 S2
3 point QUESTION 2 Consider the following problem for the payoff table (Profit $) with four decision alternatives and three states of nature: S1 S2 S3 p=0.16 p=0.23 po D1 12 29 D2 6 34 51 D3 3 37 60 D4 18 21 41 What is the expected value of perfect information (EVPI) ($) for the 4 alternatives? (Hint: (Hint: You can calculate the Expected value with perfect information (EVwPl) = (18*0.16+37*0.23+60*1-0.16-0.23))) 47
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