Answer:
$500
Explanation:
If the demand is low, then the optimal solution is to lease a small outlet. If the demand is high, then the optimal solution is to lease the large outlet. The maximum expected value (under certainty of 70 low /30 high) = ($1,000 x 70%) + ($3,000 x 30%) = $700 + $900 = $1,600
The expected value under uncertainty (medium outlet) = ($500 x 70%) + ($2,500 x 30%) = $350 + $750 = $1,100
so,
the expected payoff under certainty = $1,600
the expected payoff under uncertainty = $1,100
value of perfect information = expected payoff under certainty - expected payoff under uncertainty = $1,600 - $1,100 = $500
