Question: The local operations manager for the CRA must decide whether to hire 1 , 2 , or 3 temporary workers. He estimates that net revenues

The local operations manager for the CRA must decide whether to hire 1,2, or 3 temporary workers. He estimates that net revenues (in thousands of dollars) will vary with how well taxpayers comply with the new tax code. If he thinks the chances of low, medium, and high compliance are 20%,30%, and 50% respectively, what is his expected value of perfect information?
# of workers
low compliance
medium compliance
high compliance
1
50
50
50
2
100
60
20
3
150
70
-10
Question 4 options:
$23,000
$20,000
$28,000
$26,000
$30,000

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