How many of the following statements are true? 1. Whether Pierre should choose Alternative 4 is insensitive to the value ofv that he assigns. II. Ifv = 0.2 and one ofRegionBank's major creditors were...


How many of the following statements are true?


1. Whether Pierre should choose Alternative 4 is insensitive to the value ofv that he assigns.


II. Ifv = 0.2 and one ofRegionBank's major creditors were to offer Pierre $50 M to choose Alternative 3, he should refuse.


III. If Pierre were to gain (perfect) insider knowledge that the government was planning a takeover, he would choose Alternative 2.


IV. The value of clairvoyance on a government takeover is greatest when x = 0.5.


V. If v = 0.4, the value of clairvoyance on a government takeover is less than $50 M.


VI. If v = 0.4, Pierre should purchase a $10 M symmetric detector that predicted a government takeover with accuracy 0.75 if it is his best offer for new information.


VII. If v = 0.4 and Pierre knew of a detector with specificity 0.75, he should pay nothing for that detector if its sensitivity were below 0.45.


a. 0or4


b. 1 or 5


c. 2 or 6


d. 3 or 7



May 04, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here