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Humber Techis now considering hiring ALBION consultants for information regarding the city's marioet potential. ALBION Consultants will give either a favourable (F) or unfavourable (U)
Humber Techis now considering hiring ALBION consultants for information regarding the city's marioet potential. ALBION Consultants will give either a favourable (F) or unfavourable (U) report. The probability of ALBION giving a favourable report is 0.45 . It ALBION gives a favourable report, the probability of high market potential is 0.52 while the probabiity of a low market potential is 0.06 . if ALBiON gives an unfavourabie report, the probability of high market potential is 0.14 and that of low market potentiat 0.32 1. If ALBION gives a fevourable report, what is the expected value of the cptima! decision? 2. If ALBON gives an unfaveurabie report, what is the expected vavue of the optimal decision? 5 3. What is the expected value with sample information (EVwSi) provided by ALBION?\$ 4. What is the expected value of the sample information (EVSI) provided by ALBiON? 5 5. Eased on the EVS), should Humber Tech pay $280 tor the sample information? 6. What is the etticiency of the sample information? Round % to 1 decimal place
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