Assume you are faced with the following decision alternatives and two states of nature. The probability of the occurrence of state of nature 1 is 0.35. The payoff table is shown below. 
a.Determine the expected value of each alternative and indicate which decision alternative is the best.
b.Determine the expected value with perfect information about the states of nature.
c.Determine the expected value of perfect information.
Definitions:
Pure Competition
A market structure characterized by a large number of small firms, a homogeneous product, freedom of entry and exit, and perfect information, leading to firms being price takers.
Characteristics
Distinctive qualities or attributes that help to define and distinguish a person, object, or phenomenon.
Market Structures
Differentiated classifications of markets based on the number of firms in the market, the nature of competition, and the degree of market power held by each.
Differentiated
The process or strategy of making a product appear distinct from similar products offered by competitors in the market.
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