What is the maximum amount that you would be willing to pay for perfect information?
What will be an ideal response?
Answer: Expected payoff with perfect information = (.3)(80) + (.5)(70) + (.2)(90) = 77
EVPI = 77 - max (EV) = 77 -57 = 20
Business
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Studies have concluded clinician communication provided in a timely manner with sincerity influences patients' responses to adverse events.
a. true b. false
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A cash balance pension plan guarantees the participating employee:
A) nothing B) a minimum interest rate on the employee's retirement savings C) a minimum monthly pension amount for the first 10 years of retirement D) none of the above
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