Question: Suppose one has a decision to make where there are three potential outcomes A, B and C with payoffs of $50,000,$25,000 and $75,000 respectively. The

Suppose one has a decision to make where there are three

Suppose one has a decision to make where there are three potential outcomes A, B and C with payoffs of $50,000,$25,000 and $75,000 respectively. The probabilities of the three outcomes A,B and C are 0.5,0.3 and 0.2 each. The investor may also choose to do nothing with the obvious pay-off of zero in that case. How much should the decision maker be willing to pay for information that would allow him to know ahead of the decision which outcome would occur

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