Finding expected value of perfect information


Assignment:

Dwayne Whitten, president of Whitten Industries, is considering whether to build a manufacturing plant in north Texas. His decision is summarized in the following table:

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a) Construct a decision tree.
b) Determine the best strategy using expected monetary value (EMV).
c) What is the expected value of perfect information (EVPI)?

Provide complete and step by step solution for the question and show calculations and use formulas.

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