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There Is an Option of Paying $100 to Have Research

Question 66

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  There is an option of paying $100 to have research done to better predict which state of nature will occur.When the true state of nature is S1,the research will accurately predict S1 60% of the time.When the true state of nature is S2,the research will accurately predict S2 80% of the time. -What is the expected value of perfect information? A) 40  B) 45  C) 75  D) 85  E) 100 There is an option of paying $100 to have research done to better predict which state of nature will occur.When the true state of nature is S1,the research will accurately predict S1 60% of the time.When the true state of nature is S2,the research will accurately predict S2 80% of the time.
-What is the expected value of perfect information?


A) 40
B) 45
C) 75
D) 85
E) 100

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