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Shown here is a decision cable. A forecast can be purchased by the decision maker. The forecaster is not correct 100% of the time. Also
Shown here is a decision cable. A forecast can be purchased by the decision maker. The forecaster is not correct 100% of the time. Also given is a table containing the probabilities of the forecast being correct under different states of nature. Use the first table to compute the expected monetary value of this decision without sample information. Use the second table to revise the prior probabilities of the various decision alternatives. From this and the first table, compute the expected monetary value with sample information. Construct a decision tree to represent the options, the payoffs, and the expected monetary values. Calculate the value of sample information. EMV without Sample Information = (Round your answer to the nearest integer.) EMV with Sample Information = (Round your answer to the nearest integer.) Value of Sample Information = (Round your answer to the nearest integer.)
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