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July 20, 2021

expected value of perfect information

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In your own words, explain how to obtain the “expected value of perfect information” for any payoff table, which has probabilities associated with each state of nature.

Then, provide an example, drawing from any of the payoff tables in Problems 1–19 at the end of Chapter 12.

If no probabilities are given for the states of nature, then assume equal likelihood.

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