Question: Determine the Expected Value

A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.



If the probability of brisk business is .40 and for slow business is .60, determine the expected value of perfect information is:

1. 12
   b) 55
   c) 57
   d) 69
   

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