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Exhibit 20-5 Below You Are Given a Payoff Table Involving Three States

Question 1

Multiple Choice

Exhibit 20-5
Below you are given a payoff table involving three states of nature and three decision alternatives. Exhibit 20-5 Below you are given a payoff table involving three states of nature and three decision alternatives. The probability of occurrence of S<sub>1</sub> is 0.2 and the probability of occurrence of S<sub>2</sub> is 0.3. -Refer to Exhibit 20-5. The expected value of perfect information is A) 18.2 B) 11.7 C) 51 D) 37 The probability of occurrence of S1 is 0.2 and the probability of occurrence of S2 is 0.3.
-Refer to Exhibit 20-5. The expected value of perfect information is


A) 18.2
B) 11.7
C) 51
D) 37

Correct Answer:

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