(Value of Information): Midwest Freight Inc.
(MFI) is a logistics company handling fragile item shipping. MFI
has received an order with the stipulation that if the item arrives
late, MFI will pay $1,000 for each late day.
MFI will make $40,000 if the item is delivered on time, but will
lose $17,000 if it is defective. MFI can easily deliver the system
on time. However, it may, with probability 0.5, be defective. The
deficiency can be removed by an adjustment...