Consider the Following Payoff Table in Which D1 Through D4

question 16

Multiple Choice

Consider the following payoff table in which D1 through D4 represent decisions, S1 through S4 represent states of nature, and the values in the cells represent profits. $\begin{array}{c}\begin{array}{c}\\ \text { D1 } &\\ \text {D2 } &\\ \text {D3} &\\ \text {D4} &\\\end{array}\begin{array}{|c|c|c|c|}\hline S 1 & S 2 & S 3 & S 4 \\\hline 30 & 20 & -50 & 100 \\\hline 60 & 120 & 40 & -80 \\\hline 20 & 0 & 60 & 80 \\\hline 40 & -60 & 80 & 80\\\hline\end{array}\end{array}$ Suppose that each state of nature is equally likely to occur.The expected value of perfect information is:

• A)0
• B)40
• C)50
• D)90