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Use the Below Information to Answer the Following Questions) -The Expected Value of Sample Information EVSI) Is Equal to Is

Question 34

Multiple Choice

Use the below information to answer the following questions) . Below is a payoff table with three mortgage options:  Outcame  Probability 0.60.30.1 Decision  Rates Rise  Rates Stable  Rates Fall  1-year ARM $66,645$43,650$38,560 3-year ARM $62,857$47,698$42,726 30-year fixed $52,276$52,276$52,276\begin{array} { | l | l | c | c | } \hline & &{ \text { Outcame } } \\\hline \text { Probability } & { 0.6 } & { 0.3 } & { 0.1 } \\\hline \text { Decision } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { 1-year ARM } & \$ 66,645 & \$ 43,650 & \$ 38,560 \\\hline \text { 3-year ARM } & \$ 62,857 & \$ 47,698 & \$ 42,726 \\\hline \text { 30-year fixed } & \$ 52,276 & \$ 52,276 & \$ 52,276 \\\hline\end{array}
-The expected value of sample information EVSI) is equal to the .


A) Expected Monetary Value EMV) without sample information divided by the EMV with sample information
B) EMV without sample information minus the EMV with sample information
C) sum of the EMV with sample information and the EMV without sample information
D) EMV with sample information minus the EMV without sample information

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