>Value of complete information-Difference between the expected value of a choice when there is complete information and the expected value when information is incomplete. Profits from Sales of Suits($)(selling price 300 per suit) Sales of 50 Sales of 100 Expected Profit Buy 50 suits (300-200)×50=5000 5000 5000 (buying price 200 per suit) Buy 100 suits (300-180)×50-90×50=1500 (300-180)×100=12000 6750 (buying price Half of what you paid for the suits not sold can be returned $180 per suit) Expected value with complete information: $8500 Less Expected value with uncertainty(buy 100 suits): -$6750 Value of complete information $1750 Thus it is worth paying up to 1750 to obtain an accurate prediction of sales. Note:$5000X0.5+$12000×0.5=$8500➢ Value of complete information-Difference between the expected value of a choice when there is complete information and the expected value when information is incomplete. Profits from Sales of Suits(＄)(selling price＄300 per suit) Sales of 50 Sales of 100 Expected Profit Buy 50 suits (buying price ＄200 per suit) (300-200) ×50=5000 5000 5000 Buy 100 suits (buying price ＄180 per suit) (300-180) ×50-90×50=1500 Half of what you paid for the suits not sold can be returned (300-180) ×100=12000 6750 Expected value with complete information: ＄ 8500 Less Expected value with uncertainty(buy 100 suits): -＄ 6750 Value of complete information ＄ 1750 Thus it is worth paying up to ＄ 1750 to obtain an accurate prediction of sales. Note： ＄ 5000 ×0.5+ ＄ 12000 ×0.5 = ＄ 8500