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Julie Is Planning to Open a Restaurant and Is Considering

Question 39

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Julie is planning to open a restaurant and is considering two possible locations.She has estimated the payoff for each location for each of three different possible levels of restaurant popularity (state of nature)as shown below. Julie is planning to open a restaurant and is considering two possible locations.She has estimated the payoff for each location for each of three different possible levels of restaurant popularity (state of nature)as shown below. Suppose that Julie estimates the following probabilities for each level of restaurant popularity. If Julie had perfect information,the expected payoff under certainty is 310. Suppose that Julie estimates the following probabilities for each level of restaurant popularity. Julie is planning to open a restaurant and is considering two possible locations.She has estimated the payoff for each location for each of three different possible levels of restaurant popularity (state of nature)as shown below. Suppose that Julie estimates the following probabilities for each level of restaurant popularity. If Julie had perfect information,the expected payoff under certainty is 310. If Julie had perfect information,the expected payoff under certainty is 310.

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