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

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Definitions:

Profit-Maximizes

Refers to a strategy or actions by firms aiming to achieve the highest possible profit given their constraints and market conditions.

Active Listener

Someone who pays close attention to what is being said, demonstrating engagement and understanding through feedback, paraphrasing, and reflection.

Management's Decision

Refers to choices or judgments made by those with executive or administrative authority within an organization, influencing its direction and operations.

Feedback

Information provided regarding aspects of one’s performance or understanding, used as a basis for improvement.