Need help with the following:
In your own words, explain how to obtain the “expected value ofperfect information” for any payoff table, which has probabilities associatedwith each state of nature. Then, provide an example, drawing from any of thepayoff tables in Problems 1-17 in the back of Chapter 12. If no probabilitiesare given for the states of nature, then assume equal likelihood.
A local real estate investor in Orlando is considering threealternative investments: a motel, a restaurant, or a theater. Profits from themotel or restaurant will be affected by the availability of gasoline and thenumber of tourists; profits from the theater will be relatively stable underany conditions. The following payoff table shows the profit or loss that couldresult from each investment
Determine the best investment, using the following decisioncriteria.