Question: 2. Determine how much Gregg would expect to earn before he learns with certainty what the weather will be. Gregg knows that hell make 15

2. Determine how much Gregg would expect to earn before he learns with certainty what the weather will be. Gregg knows that he’ll make 15 with a 50%

probability 1 = 12 2 and 0 with a 50% probability, so his expected value, given that he’ll receive perfect information in time to act on it, is 112

* 152 + 112

* 02 = 7.5.

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