What would be the value added by a market analysis undertaken, if the expected value with sample information is $8.56 million and the expected value without sample information is $6.39 million?
a. $8.56 million b. $6.39 million
c. $2.17 million d. $14.95 million
c
RATIONALE: The difference between the expected value associated with sample information about the states of nature and the expected value associated without sample information about the states of nature gives the required expected value of sample information as $2.17 million. In other words, conducting the market research study adds a value of $2.17 million.
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