Lakeshorecan hire a labour researcher for a $14,900 to obtain further information on the possibility of a strike. The researcher's report will either befavourableorunfavourable. The probability estimates are:

Probability of anunfavorablereport = 0.45

Probability ofno strikegiven afavorablereport = 0.7

Probability of astrikegiven anunfavorablereport = 0.6

1. If the researcher gives afavourablereport, what is the expected value of the optimal decision?

$

2. If the researcher gives anunfavourablereport, what is the expected value of the optimal decision?

$

3. What is the expected value with sample information (EVwSI) provided by the researcher?

$

4. How much shouldLakeshorepay the researcher, at most?

$

5. Based on the EVSI, shouldLakeshorepay $14,900 for the sample information?

Select an answer

Yes, they should.

No, they should not.

6. What is the efficiency of the sample information? Round % to 1 decimal place.

%