Assume that the probability of improvement in economic/political climate is 0.4, the probability of same economic/political climate is 0.2, and the probability of decline in economic/political climate is 0.4.
(a) Calculate the expected value of each decision alternative. What is your recommendation using the expected value criterion?
(b) Calculate the expected opportunity loss value of each decision alternative. What is your recommendation using the expected opportunity loss criterion?
(c) Calculate and interpret the value of perfect information.