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Question - UWX Company can make either of 2 products, XX and YY, but not both. The profitability of each product depends on the state of the market, as follows:
Market state Profit from the product Probability of market state
XX YY
£ £
Good 20,000 17,000 0.25
Fair 15,000 16,000 0.5
Poor 6,000 7,000 0.25
Required - What is the expected value of perfect information as to the state of the market?
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