What Is the Expected Value with Perfect Information in the Following

question 2

Multiple Choice

What is the expected value with perfect information in the following decision table?
$$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { States of Nature } } \\\begin{array} { | l | c | c | } \hline \text { Alternatives } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } \\\hline \mathrm { p } & .6 & .4 \\\hline \text { Option 1 } & 200 & 300 \\\hline \text { Option } 2 & 50 & 350 \\\hline\end{array}$$

• A) 50
• B) 200
• C) 260
• D) 300
• E) 350

---

Definitions:

Business Model

A plan or framework a company uses to operate, generate revenues, and make a profit, detailing how it conducts business.

Strategies

Plans of action developed to achieve long-term or overall goals in various contexts, such as business, marketing, or military.

Value

The importance, worth, or usefulness of something, often considered in terms of financial, social, or personal significance to individuals or entities.

Road Map

A Road Map is a strategic plan that outlines the steps, milestones, and objectives needed to achieve a set of goals, often used in project planning and product development.