Calculate the evpi for the national market

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Reference no: EM131641819

Question: We related EVPI to the value of an envelope that contains the true ultimate outcome. This concept can be extended to "less than perfect" information. For example, in the Acme problem suppose that the company could purchase information that would indicate, with certainty, that one of the following two outcomes will occur:

(1) the national market will be great, or

(2) the national market will not be great.

Note that outcome (2) doesn't say whether the national market will be fair or awful; it just says that it won't be great. How much should Acme be willing to pay for such information?

Reference no: EM131641819

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