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A cost payoff table is given as Cost Payoff Table State of Nature 51 53 Decision d1 d2 $2 757 358 951 809 1035 444
A cost payoff table is given as Cost Payoff Table State of Nature 51 53 Decision d1 d2 $2 757 358 951 809 1035 444 d3 332 377 763 e. What is the EVPI? (3 marks) f. If the conditional probabilities obtained from sample information I are PI | sv=0.1, PI |s: 0.05, PCI (s)= 0.2. compute the revised or posterior probabilities PS 10, PS> | 1) and P(s, 11). (4 marks) g. Compute expected values for each decision using the revised probabilities, obtained from pact, f. What choice should be made? (2 marks) HINT: You must show all computations in detail
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