Exhibit 21-5 Below You Are Given a Payoff Table Involving Three States

question 14

Multiple Choice

Exhibit 21-5
Below you are given a payoff table involving three states of nature and three decision alternatives. The probability of occurrence of S₁ is 0.2 and the probability of occurrence of S₂ is 0.3.
-Refer to Exhibit 21-5. The expected value of perfect information is

• A)18.2
• B)11.7
• C)51
• D)37

---

Definitions:

Reciprocity

A mutual exchange of privileges or actions, where the behavior of one party leads to a response from another in a similar manner.

Mutual Concern

A shared interest or worry among individuals or groups.

Fearful Avoidant Attachment

Style of attachment in which people have both high anxiety and high avoidance; they have low opinions of themselves and keep others from getting close.

Narcissism

A personality trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.