The concept behind EVPI is that you purchase perfect information (the envelope), then open the envelope to
Question:
a. How much should Acme be willing to pay for the change if p = 0.6? If p = 0.8? If p = 0.95?
b. Are these types of changes realistic? Answer by speculating on the types of actions Acme might be able to take to make the probability of a great national market higher. Do you think such actions would cost more or less than what Acme should be willing to pay for them (from part a)?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Question Posted: