Humber Tech is now considering hiring ALBION consultants for information regarding the city's market potential. ALBION Consultants
Question:
Humber Tech is now considering hiring ALBION consultants for information regarding the city's market potential. ALBION Consultants will give either a favourable (F) or unfavourable (U) report. The probability of ALBION giving a favourable report is 0.55. If ALBION gives a favourable report, the probability of high market potential is 0.54 while the probability of a low market potential is 0.08. If ALBION gives an unfavourable report, the probability of high market potential is 0.14 and that of low market potential 0.5.
4. What is the expected value of the sample information (EVSI) provided by ALBION? $
5. Based on the EVSI, should Humber Tech pay $410 for the sample information? Select an answer
Yes, they should.
No, they should not.
Correct
6. What is the efficiency of the sample information? Round % to 1 decimal place. %
Organic Chemistry
ISBN: 978-1118133576
11th edition
Authors: Graham Solomons, Craig Fryhle, Scott Snyder