A special case of sample information where the information tells ...

[notis]

A special case of sample information where the information tells the decision maker exactly which state of nature is going to occur is known as_____ information.
 a. perfect b. mutual
  c. conditional d. prior

Question 2

What would be the value added by a market analysis undertaken, if the expected value with sample information is 8.56 million and the expected value without sample information is 6.39 million?
 a. 8.56 million b. 6.39 million
  c. 2.17 million d. 14.95 million

[nital]

Answer to Question 1

a
RATIONALE: A special case of sample information where the information tells the decision maker exactly which state of nature is going to occur is known as perfect information.

Answer to Question 2

c
RATIONALE: The difference between the expected value associated with sample information about the states of nature and the expected value associated without sample information about the states of nature gives the required expected value of sample information as 2.17 million. In other words, conducting the market research study adds a value of 2.17 million.

[notis]

Excellent

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