Moreover if she loses the case there is a 50 chance

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Unformatted text preview: expected profit is $484 million. 4 c. What is the expected value of the sample information in part b? What does this say about how large the cost of the marketing survey can be before it would no longer be worthwhile to conduct the survey? The expected value of sample information is the expected payoff with the information minus the expected payoff without the information. With the survey information, the expected payoff is $484 million. Without the survey information, the expected payoff is $440 million. Thus, the expected value of sample information in part b is $44 million. This is the most that they should be willing to pay for the marketing survey before it would no longer be worthwhile to conduct. 5 9.S2 Settle or Go to Trial Meredith Delgado owns a small firm that has developed software fo...
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