Consider the Payoff Table in Problem 16

Multiple Choice

Consider the payoff table in problem 16.Suppose that each state of nature is equally likely to occur and that two indicators, I1 and I2, are possible.The conditional probabilities for indicator I1 given the states of nature are as follows: P(I1|S1) = .1, P(I1|S2) = .2, P(I1|S3) = .3, and P(I1|S4) = .4.The expected value of sample information is:

A) 0
B) 5.50
C) 45.50
D) 90