Betsy Pitzer makes decisions according to Bayes' decision rule. For her current problem, Betsy has constructed the following payoff table (in units of dollars).

a. Which alternative should Betsy choose?
b. Find the expected value of perfect information.
c. Check your answer in part b by recalculating it with the help of a decision tree.
d. What is the most that Betsy should consider paying to obtain more information about which state of nature will occur?

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State of Nature S2 Alternative S3 A, Az Аз 50 100 -100 10 - 10 20 40 -40 Prior probability 0.5 0.3 0.2