Homework Answers
For expected value with perfect information, we use the maximum
payoffs for each state of nature to obtain the expected value here
as:
EVwPI = P(A)*Max(A) + P(B)*Max(B) + P(C)*Max(C)
= 0.3*200 + 0.5*140 + 0.2*180
= 60 + 70 + 36
= 166
Therefore 166 is the required expected value here.
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