If expected value with uncertainty is $500 and the expected value with perfect info is $800, what is the value of perfect info? $1300 $300 O $300 $500 $800 5 To calculate the expected value with perfect information, start by identifying the best payoff for each: State of nature Decision alternative How is decision making with uncertainty different than decision making with risk? With risk, you estimate the probability of the various states of nature With risk, you estimate the probability of the various decision alternatives with uncertainty, you estimate the probability of the various states of nature with uncertainty, you estimate the probability of the various decision alternatives