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Dear John,
I do not understand the difference between perfect information and imperfect information while calculating expected values.Suppose we pay for some market research to tell us whether demand is likely to be high or low.
If the research were ‘perfect’ whatever answer the research people gave us would be certain to be correct.
In practice research is never going to be perfect – the research people may be pretty sure that (for example) the demand is going to be high, but they can never be 100% certain – they could be wrong. This is imperfect information.
For any calculations in the exam, it will only be ‘perfect information’.
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