Q4

Joe can drive to work on either of three different routes. He can take (i) City streets, (ii) Back roads, or (iii) the Expressway. Based on personal experience and by driving all three routes over the past 100 days, Joe figured out that he encountered (i) severe traffic congestion for 20 of those days and (ii) mild traffic congestion for 30 of those days. His information is summarized in the table below; the numeric entries are the minutes of travel time it took him to get to work. Assume Joe's measurements are typical of traffic conditions. Note 1: Define the terms in the table: None = No Congestion, Mild = Mild Congestion, and Severe = Severe Congestion). Note 2: Treat EMV here as the Expected Amount of Time (Minutes) Joe spends traveling. Note 3: HINT. You wish to spend as little time in traffic as possible. PAYOFFS Outcomes (Congestion) Alternatives None Mild Severe City streets 15 30 45 Back roads 20 25 35 Expressway 30 30 30 Using the EMV method, how much time will it take Joe to work, on average, if he picks the route with the optimal EMV (a number, in minutes, is required here).Joe can drive to work on either of three different routes. He can take (i) City streets, (ii) Back roads, or (iii) the Expressway. Based on personal experience and by driving all three routes over the past 100 days, Joe figured out that he encountered (i) severe traffic congestion for 20 of those days and (ii) mild traffic congestion for 30 of those days. His information is summarized in the table below; the numeric entries are the minutes of travel time it took him to get to work. Assume Joe's measurements are typical of traffic conditions. Note 1: Define the terms in the table: None = No Congestion, Mild = Mild Congestion, and Severe = Severe Congestion). Note 2: Treat EMV here as the Expected Amount of Time (Minutes) Joe spends traveling. Note 3: HINT. You wish to spend as little time in traffic as possible. PAYOFFS Outcomes (Congestion) Alternatives None Mild Severe City streets 15 30 45 Back roads 20 25 35 Expressway 30 30 30 What is the numeric value (in minutes) of EVPI? That is, how much time could Joe save if he had perfect information about the routes