director of legal services of abc company must, Operation Management

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director of legal services of abc company must

Director of legal services of ABC Company must decide whether to hire another full-time lawyer or to hire part-time lawyers. Anticipated costs for the two options under three possible demand levels are given in the table below:

States of Nature

Alternatives Low Demand Medium Demand High Demand

Hire full-time $2,400 $3,300 $4,400

Hire part-time $4,800 $3,400 $2,400

Probabilities 0.5 0.3 0.2

What is the Expected Value of Perfect Information? Specify only the amount. e.g. 350

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