LAMA (15 points) 120 QUESTION 7 Expected value Applied to Business Application Assuming the following Cost decision tree, answer the following questions: Tree is developed to answer whether to send the manuscript for review by a consultant and then what decision alternative to choose. 4 10 a $ 150 Review Showing all the relevant calculations, state the decision strategy. (8 points) 130 110 . What is the expected value of perfect information? (3 points) 90 5 . INO What is the worth of information that the consultant will provide for the company? (4 points) 120 110 P(F) = 0.7 P(U) = 0.3 P(S1/F) = 0.85 P(S2|F) = 0.15 P(S1U) = 0.45 P(S2U) = 0.55 No Review 90 20 minutes on slide 180 P(S1) = 0.6 P(S2) = 0.4 @ 26 LAMA (15 points) 120 QUESTION 7 Expected value Applied to Business Application Assuming the following Cost decision tree, answer the following questions: Tree is developed to answer whether to send the manuscript for review by a consultant and then what decision alternative to choose. 4 10 a $ 150 Review Showing all the relevant calculations, state the decision strategy. (8 points) 130 110 . What is the expected value of perfect information? (3 points) 90 5 . INO What is the worth of information that the consultant will provide for the company? (4 points) 120 110 P(F) = 0.7 P(U) = 0.3 P(S1/F) = 0.85 P(S2|F) = 0.15 P(S1U) = 0.45 P(S2U) = 0.55 No Review 90 20 minutes on slide 180 P(S1) = 0.6 P(S2) = 0.4 @ 26