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A decision maker must decide how many units of a certain IT equipment to order for its work operation. Information on pricing, sales, and inventory
A decision maker must decide how many units of a certain IT equipment to order for its work operation. Information on pricing, sales, and inventory costs has led to the following payoff table; in thousands. Payoff Table size Low Medium (52) High (St) {93) Consider the Payoff Table which the following chance event probabilities: P(s1)=0.2, P(sz)=0'5. and P(53)=D.3 Find the EVPI (Expected Value of Perfect information = Expected Value with Perfect Information - Expected Value without Perfect Information or EVPI=EVwPl - EVwoPl)
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