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:

Children

Young human beings below the age of puberty or below the legal age of majority.

Major Causes

The primary reasons or factors that lead to a certain outcome or condition.

Death

is the cessation of all biological functions that sustain a living organism.

Pneumonia

An infection that inflames the air sacs in one or both lungs, which may fill with fluid or pus, causing cough with phlegm or pus, fever, chills, and difficulty breathing.