Below you are given a revenue payoff table involving three decision alternatives and two states of nature.
DecisionAlternative
States of Nature
s1
s2
A
50,000
-10,000
B
10,000
15,000
C
25,000
10,000
?
The probability of the occurrence of state of nature s1 is .4.
The expected value of perfect information equals
A. 13,000.
B. 14,000.
C. 15,000.
D. 16,000.
Answer: A
Business
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