Question: You are given the following payoff table (in units of thousands of dollars) for a decision analysis problem: (a) According to Bayes decision rule, which

You are given the following payoff table (in units of thousands of dollars) for a decision analysis problem:

(a) According to Bayes€™ decision rule, which alternative should be chosen?
(b) Find EVPI.
(c) You are given the opportunity to spend $1,000 to obtain more information about which state of nature is likely to occur. Given your answer to part (b), might it be worthwhile to spend this money?

State of Nature S2 0 0 0.5 Alternative Sa A1 4 0 0 0 Prior probability 0.2 0.3

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