What is his expected value of perfect information?
A)$15,000
B)$61,000
C)$69,000
D)$72,000
E)$87,000

Question

What is his expected value of perfect information?
A)$15,000 
B)$61,000 
C)$69,000 
D)$72,000 
E)$87,000

Quizplus · Accepted Answer

The expected value of perfect information is the difference between the expected value with perfect information and the expected value without perfect information. In this case, the expected value with perfect information is $87,000 and the expected value without perfect information is $72,000. Therefore, the expected value of perfect information is $87,000 - $72,000 = $15,000.

What Is His Expected Value of Perfect Information