You are given the following payoff table in units of
You are given the following payoff table (in units of thousands of dollars) for a decision analysis problem:
(a) According to Bayes’ decision rule, which alternative should be chosen?
(b) Find EVPI.
(c) You are given the opportunity to spend $1,000 to obtain more information about which state of nature is likely to occur. Given your answer to part (b), might it be worthwhile to spend this money?
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