Question 1
The expected value with perfect information is
◦ obtained using conditional probabilities.
◦ the same as the expected value of perfect information.
◦ valuable in situations involving risk.
◦ the average return obtained when the decision maker knows which state of nature is going to occur before the decision is made.
◦ the maximum EMV for a set of alternatives.
Question 2
What is the EMV for Option 2 in the following decision table?
◦ 30,000
◦ 10,000
◦ 24,000
◦ 16,000
◦ 20,000