Question
Mr. Mapu plays football at Stadium S, which offers both a free outdoor stadium and a paid dome stadium. If he goes to play football
Mr. Mapu plays football at Stadium S, which offers both a free outdoor stadium and a paid dome stadium. If he goes to play football on a rainy day, he must buy a ticket to use the dome stadium, otherwise Mr. Mapu prefers to use the free outdoor stadium. At the beginning of summer vacation, Mr. Mapu considers whether to buy a $150 seasonal ticket and he can use the dome stadium 1 hour/day for the entire season. If he doesn't have a season pass, he has to pay $10 per hour use of the dome stadium. Past meteorological records show that there is a 70% chance that summer will be sunny. Before summer begins, Mr.
Mapu has the option to purchase a long-range weather forecast for $10. These forecasts are all correct to a degree of 80%.
Assuming that Mr. Mapu's goal is to minimize the total expected cost for the summer, what should he do? Find EVPI.
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