Business, 14.12.2021 03:10 attwertt

Suppose that we have the option of surveying our market before we make the final decision; if we do so, we will either get a favorable report or an unfavorable report. Further suppose that if we get a favorable report, our expected return (assuming we make the best decision we can in light of that new information) is 22, but if we get an unfavorable report, our expected return is 10. If we decide to not pursue the market survey, our expected return is 13. Finally, suppose that the probability of good news is 65%. Calculate the value of the market survey, and round your final answer to two decimal places.

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Suppose that we have the option of surveying our market before we make the final decision; if we do...

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