The following payoff table (in thousands of dollars) considers three possible levels of demand in a housing complex.If there is a 45% chance that the demand level will be low, 30% that it will be medium and 25% chance that it will be high, what is the expected value of perfect information?

A)$208.75
B)$225
C)$310
D)$326.25
E)$535

Question

The following payoff table (in thousands of dollars) considers three possible levels of demand in a housing complex.If there is a 45% chance that the demand level will be low, 30% that it will be medium and 25% chance that it will be high, what is the expected value of perfect information?

A)$208.75 
B)$225 
C)$310 
D)$326.25 
E)$535

Quizplus · Accepted Answer

The Answer of The following payoff table (in thousands of dollars) considers three possible levels of demand in a housing complex.If there is a 45% chance that the demand level will be low, 30% that it will be medium and 25% chance that it will be high, what is the expected value of perfect information?

A)$208.75 
B)$225 
C)$310 
D)$326.25 
E)$535

The Following Payoff Table (In Thousands of Dollars) Considers Three