Find expected value of perfect information for game


You have option to play (or not) the game of chance involving toss of the fair coin. If it lands heads you win $10. If it lands tails you lose $10.

i) Create pay off table for the game

ii) Find expected value of playing the game?

iii) Find expected value of perfect information for game?

iv) Assume you could buy perfect information before every toss of coin for $3, how much total return (profit) could you expect after ten tosses of coin?

v) Find expected value of the game if it costs $1 to play for every toss of coin?

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Mathematics: Find expected value of perfect information for game
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