In given Exercise, if x is the probability that the shipment is lost, for what value of x will the alternatives have the same EMV? Assuming this value for x, what is the expected value of perfect information?
Exercise
An antique collector is shipping $50,000 worth of items from Europe to America and must decide whether to insure the shipment for its full value. An insurance firm will provide this protection for a fee of $500. What will be the collector's decision if she uses the maximin criterion? The maximax criterion? The minimax regret criterion?