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What is the Expected Value of Perfect Information, EVPI? Question 11 options: $76,800 $75,700 None of the answers provided is correct. $72,800 $2,800 Hugh is

image text in transcribedWhat is the Expected Value of Perfect Information, EVPI?

Question 11 options:

$76,800
$75,700
None of the answers provided is correct.
$72,800
$2,800

Hugh is considering transitioning to a new job next year. He will either keep his current job which pays a net income of $70,000 or switch to a new job. If he changes jobs, his net income will vary depending on the state of the economy. He estimates that the economy will be Strong with 30% chance ( $85,000 net income), Average with 30% chance ($74,000 net income), or Weak with 40% chance ($63,000 net income)

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