Director of the legal services of ABC Company should decide whether to appoint another full-time lawyer or to appoint part-time lawyers. Anticipated costs for two options under 3 possible demand levels are given in 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 the Perfect Information? Identify only the amount. e.g. 350