Melissa Rossi,Product Manager at National Consumers,Inc.(NCI),is evaluating alternatives for introducing a new package for toothpaste. She has identified four alternative markets,and has constructed the following table which shows NCI's rewards (in $1,000,000's)for various levels of acceptance by the markets and their probabilities. The expected value of perfect information is ________.
A) $420,000
B) $570,000
C) $660,000
D) $720,000
E) $890,000

Question

Melissa Rossi,Product Manager at National Consumers,Inc.(NCI),is evaluating alternatives for introducing a new package for toothpaste. She has identified four alternative markets,and has constructed the following table which shows NCI's rewards (in $1,000,000's)for various levels of acceptance by the markets and their probabilities.  The expected value of perfect information is ________.
A) $420,000 
B) $570,000 
C) $660,000 
D) $720,000 
E) $890,000

Quizplus · Accepted Answer

The Answer of Melissa Rossi,Product Manager at National Consumers,Inc.(NCI),is evaluating alternatives for introducing a new package for toothpaste. She has identified four alternative markets,and has constructed the following table which shows NCI's rewards (in $1,000,000's)for various levels of acceptance by the markets and their probabilities.  The expected value of perfect information is ________.
A) $420,000 
B) $570,000 
C) $660,000 
D) $720,000 
E) $890,000