A person is trying to decide if he or she should buy a lottery ticket. The ticket costs $2.00. If the ticket is a winner
Posted: Sun Jul 10, 2022 10:11 am
A person is trying to decide if he or she should buy a lotteryticket. The ticket costs $2.00. If the ticket is a winner, theprize would be $1,012. Knowing that winning $1,012 is not a certainoutcome (state of nature), the person finds that the probability ofwinning is 0.001. Based on this information, the following payofftable can be constructed:
What is the expected value of perfect information?
Group of answer choices
A) $1.00
B) $1.010
C) $2.010
D) Cannot be computed
What is the expected value of perfect information?
Group of answer choices
A) $1.00
B) $1.010
C) $2.010
D) Cannot be computed