Consider the following payoff table:DA: Decision Alternative.Decision Alternative Good BadProbabilitiesState of Nature0.6DA1-3.22DA213.80DA33.75DA44.066.33What is the Expected value under perfect Information (EVUPI)?(Please keep 2 decimals for your answer)Your Answer:Answer0.45.21-5.406.00

It is a case of expected cash flows for different alternatives, based on different economic…

Consider the following payoff table: DA: Decision Alternative. State of Nature Decision Alternative Good Bad Probabilities 0.4 0.6 DA1 5.21 -3.22 DA2 -5.40 13.80 DA3 6.00 3.75 DA4 4.06 6.33 What is the Expected value under perfect Information (EVUPI)? (Please keep 2 decimals for your answer)

Consider the following payoff table: DA: Decision Alternative. State of Nature Decision Alternative Good Bad Probabilities 0.4 0.6 DA1 5.21 -3.22 DA2 -5.40 13.80 DA3 6.00 3.75 DA4 4.06 6.33 What is the Expected value under perfect Information (EVUPI)? (Please keep 2 decimals for your answer)

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 6P

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Question

Consider the following payoff table:
DA: Decision Alternative.
Decision Alternative Good Bad
Probabilities
State of Nature
0.6
DA1
-3.22
DA2
13.80
DA3
3.75
DA4
4.06
6.33
What is the Expected value under perfect Information (EVUPI)?
(Please keep 2 decimals for your answer)
Your Answer:
Answer
0.4
5.21
-5.40
6.00

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