The Construction Manager for Acme Construction, Inc

question 193

Multiple Choice

The construction manager for Acme Construction, Inc., must decide whether to build single-family homes, apartments, or condominiums. He estimates annual profits (in $000) will vary with the population trend as follows:

If he feels the chances of declining, stable, and growing population trends are 40 percent, 50 percent, and 10 percent, respectively, what is his expected value of perfect information?

• A)$187,000
• B)$132,000
• C)$122,000
• D)$64,000
• E)$55,000

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Definitions:

Compulsion

A psychological condition where an individual feels the need to perform specific actions repeatedly in an attempt to reduce anxiety or prevent a perceived negative outcome.

Agoraphobia

An anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or help wouldn't be available if things go wrong.

Social Phobia

A persistent and overwhelming fear of social situations, leading to significant anxiety and avoidance that impair daily functioning.

Generalized Anxiety Disorder

A chronic disorder characterized by excessive, long-lasting anxiety and worry about nonspecific life events, objects, and situations.