Question: Expected Value of Perfect Information EVPI (10.0 points)
The quality control manager for ENTA Inc. must decide whether to accept (a1), further analyze (a2) or reject (a3) a lot of incoming material. Assume the following payoff table is available. Historical data indicates that there is 30% chance that the lot is poor quality (s1), 50 % chance that the lot is fair quality (s2) and 20% chance that the lot is good quality (s3).



What is the maximum amount that you would be willing to pay for perfect information?

1. 20
2. 39
3. 57
4. 77

Price: $2.99

Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document