In Exercise 19 13 if x is the probability that the
In Exercise 19.13, if x is the probability that the shipment is lost, for what value of x will the alternatives have the same EMV? Assuming this value for x, what is the expected value of perfect information?
In exercise
An antique collector is shipping $50,000 worth of items from Europe to America and must decide whether to insure the shipment for its full value. An insurance firm will provide this protection for a fee of $1000.
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