Following up on the previous problem, the expected net gain from information is defined as the expected amount gained by having access to the information, at its given cost, as opposed to not having access to the information. Explain how you would calculate this in general. What is its value for the Acme problem?
(Reference Problem 26)
Explain in general why EVSI is the same, regardless of the actual cost of the information. For example, in the Acme problem EVSI is the same regardless of whether the actual cost of the test market is $100,000, $200,000, or any other value. Then explain how EVSI, together with the actual cost of the information, leads to the decision about whether to purchase the information.
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