What Is the Expected Value with Perfect Information of the Following

question 88

Multiple Choice

What is the expected value with perfect information of the following decision table? States of Nature
$$\begin{array} { | c | c | c | } \hline \text { Alternatives } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } \\\hline \mathrm { p } & .4 & .6 \\\hline \text { Option 1 } & 10,000 & 30,000 \\\hline \text { Option 2 } & 5,000 & 45,000 \\\hline \text { Option 3 } & - 4,000 & 60,000 \\\hline\end{array}$$

• A) 5,000
• B) 10,000
• C) 40,000
• D) 60,000
• E) 70,000

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Definitions:

Cluster Samples

A sampling technique where the population is divided into groups, or clusters, and a sample of these clusters is selected for study.

Population Members

Individuals or items that make up the complete set being studied in a statistical analysis.

Population Members

The individuals or items that make up the entire group being studied in statistical analysis.

Selection Bias

A distortion of statistical analysis resulting from the method of collecting samples leading to an unrepresentative sample.