Question: Consider the data given in problems 3 and 4 for National Foods. The firm can hire the noted sport's pundit Jim Worden to give his
Consider the data given in problems 3 and 4 for National Foods. The firm can hire the noted sport's pundit Jim Worden to give his opinion as to whether or not the Super Bowl game will be interesting. Suppose the following probabilities hold for Jim's predictions: POim predicts game will be interestinglgame is dull) = .15 P(im predicts pame will be interesting game is average) = .25 Jim predicts game will be interestingigame is above average) =50 Jim predicts game wili be interestingigame is exciting) = .80 P(im predicts game will not be interesting|game is dull) = 85 Jim predicts game will not be interesting|game is average) =-75 POim predicts game will not be interestinglgame is above average) = .50 Jim predicts game will not be interestinglgame is exciting) = .20 a. If Jim predicts the game will be interesting, what is the probability the game will be dull? b. What is national's optimal strategy if Jim predicts the game will be (i) interesting or (li) not interesting? C. What is the expected value of Jim's information?
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