Question: Answer the following questions using the information provided below and the decision tree. P(s1)=0.66P(s1F)=0.88P(F)=0.75P(s1U)=0.16 a) What is the expected value of the optimal decision without

Answer the following questions using the

Answer the following questions using the information provided below and the decision tree. P(s1)=0.66P(s1F)=0.88P(F)=0.75P(s1U)=0.16 a) What is the expected value of the optimal decision without sample information? a) What is the expected value of the optimal decision without sample information? $ b) If sample information is favourable (F), what is the expected value of the optimal decision? $ c) If sample information is unfavourable (U), what is the expected value of the optimal decision? $ d) What is the expected value with sample information, EVwithSI? $ e) Calculate EVSI? $ f) Based on your EVSI, should you pay $400 for the sample information? yes no

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