The owner of a small business is considering three options: buying a computer, leasing a computer, or getting along without a computer. Based on the information obtained from the firm's accountant,...


The owner of a small business is considering three options: buying a computer,<br>leasing a computer, or getting along without a computer. Based on the information<br>obtained from the firm's accountant, the following payoff table (in terms of net.<br>profit) was developed:<br>State of Nature<br>State # 1<br>State # 2<br>State # 3<br>Alternative<br>(S1)<br>(S2)<br>(S3)<br>A1<br>6.<br>A2<br>АЗ<br>4<br>Based on the probability for each state of nature in previous question(the<br>probability for S1 to happen equals the probability of S2; the probability for S2 to<br>happen is three times of S3). What is the EVPI?<br>O 5.29<br>O Can't be computed with the given information<br>O 114<br>O 642<br>

Extracted text: The owner of a small business is considering three options: buying a computer, leasing a computer, or getting along without a computer. Based on the information obtained from the firm's accountant, the following payoff table (in terms of net. profit) was developed: State of Nature State # 1 State # 2 State # 3 Alternative (S1) (S2) (S3) A1 6. A2 АЗ 4 Based on the probability for each state of nature in previous question(the probability for S1 to happen equals the probability of S2; the probability for S2 to happen is three times of S3). What is the EVPI? O 5.29 O Can't be computed with the given information O 114 O 642

Jun 11, 2022
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