The Really Big Company is deciding between three levels of automation for the work cell that...

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The Really Big Company is deciding between three levels of automation for the work cell that produces a key component. Nostradamus, the company forecaster, believes that there could be three levels of demand for the products produced in this work cell and has developed this table of all possible profits (in $100,000's) for company executives. MEIEME No Automation Low Automation Medium Automation High Automation Low Demand 65 45 55 80 Medium Demand 50 55- 30 45 High Demand 35 65 55 10 Nostradamus determines that the probability of low demand is 0.3, medium demand is 0.4, and high demand is 0.3. What is the expected value of perfect information in this case? The Really Big Company is deciding between three levels of automation for the work cell that produces a key component. Nostradamus, the company forecaster, believes that there could be three levels of demand for the products produced in this work cell and has developed this table of all possible profits (in $100,000's) for company executives. MEIEME No Automation Low Automation Medium Automation High Automation Low Demand 65 45 55 80 Medium Demand 50 55- 30 45 High Demand 35 65 55 10 Nostradamus determines that the probability of low demand is 0.3, medium demand is 0.4, and high demand is 0.3. What is the expected value of perfect information in this case?

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The expected value of perfect information can be calculated as the difference between the expected v... View the full answer