Question: Steve (see Problem 8-14) has gathered some additional information. The probabilities of good, average, and poor markets are 0.25, 0.45, and 0.3, respectively. (a) Using

Steve (see Problem 8-14) has gathered some additional information. The probabilities of good, average, and poor markets are 0.25, 0.45, and 0.3, respectively.
(a) Using EMVs, what option should Steve choose? What is the maximum EMV?
(b) Using EOL, what option should Steve choose? What is the minimum EOL?
(c) Compute the EVPI and show that it is the same as the minimum EOL.

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