In Problem S1-12, if Wiley is able to assign probabilities of occurrence of 0.23 to unfavorable market conditions, 0.46 for the same market conditions, and 0.31 for favorable market conditions, what is the best decision using expected value? Based on the results in Problem S1-12 and the expected value result in this problem, does there appear to be an overall “best” decision? Compute the expected value of perfect information, and explain its meaning.
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