- This topic has 1 reply, 2 voices, and was last updated 4 years ago by
.
- Posts
Perfect information is available when a 100% accurate prediction can be made about the future by doing market research and we know in advance what will be the Best Outcomes with given probabilities on various demand levels of the profit table.
Perfect information is actually the Best Outcome (highest profit) from the profit table at each demand level multiplied to their given probabilities like this:
[Perfect information = Best Outcome(s) x Probabilities]
Imperfect information is where information is not 100% certain to be correct which means that there is a possibility that the best decision option will not be selected in spite of obtaining the information. Either the information could be correct or totally incorrect (it is extreme decision-making that could be either beneficial or not beneficial at all).
Imperfect information is actually the Possible Outcome from the profit table at each demand level multiplied by their given sum of probabilities like this:
[Imperfect information = Outcome(s) x Sum of Probabilities]
Is that correct?
- The topic ‘Perfect information…’ is closed to new replies.