There are no Bayesian calculations required in this problem. All required probabilities are given. You need to pick b

[answerhappygod]

There are no Bayesian calculations required in this problem. All
required probabilities are given.



You need to pick between two types of technology to develop and
deploy on your electronic devices (Tech A versus Tech B). There is
a congressional committee writing regulations that will effect the
profitability of the two technologies. The regulations may come out
to be favorable (.4) neutral (.3) or unfavorable. You must make
your choice before the regulations are announced.


If you pick Tech A and the regulations are favorable the payoff is
$100M if neutral $50M and if unfavorable $-20M.
If you pick Tech B and the regulations are favorable or neutral the
payoff is $70M and if unfavorable $10M.


1.) The technology with the best expected value is


1. Tech A
2. Tech B
enter number
______
2.) The expected value is


$
______
M
no decimals


The committee chair's assistant (writing the regs) is available for
consultation for a fee. The committee chair's assistant will be
able to tell you exactly (perfect prediction) on what the outcome
of the regulations will be (favorable .4, neutral .3 or
unfavorable)


3.) What is the maximum the assistants information is worth
(EVPI)?


$
_____
M
no decimals