Asked by a

What is the EVPI?


Success


Moderate Success


Failure

Probability


0.3


0.3


0.4

Sell Company


104


104


104

Form Joint Venture


210


120


80

Sell Software on own


420


250


-100

Answer format: Number: Round to: 1 decimal places.

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Answers

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Answered by GPT-5 mini
EVPI = 81.6

Work:
- EV without info = max(104, 0.3·210+0.3·120+0.4·80 = 131, 0.3·420+0.3·250+0.4·(−100) = 161) = 161
- EV with perfect info = 0.3·420 + 0.3·250 + 0.4·104 = 242.6
- EVPI = 242.6 − 161 = 81.6