The New Owner of a Beauty Shop Is Trying to Decide

question 101

Multiple Choice

The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services, and she has estimated demand in three categories, low, medium, and high. $$\begin{array} { | l | l | l | l | } \hline { \begin{array} { l } \text { NUMBER } \\\text { OF } \\\text { BEAUTICIANS }\end{array} } & { \text { DEMAND } } \\\hline & \text { LOW } & \text { MEDIUM } & \text { HIGH } \\\hline \text { One } & 50 & 75 & 100 \\\hline \text { Two } & 0 & 100 & 100 \\\hline \text { Three } & - 100 & 70 & 300 \\\hline\end{array}$$ If she feels the chances of low, medium, and high demand are 50 percent, 20 percent, and 30 percent respectively, what is her expected value of perfect information?

• A) $54,000
• B) $65,000
• C) $70,000
• D) $80,000
• E) $135,000

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Definitions:

Human Diseases

Health conditions or disorders found in humans, often caused by pathogens, genetic factors, or environmental influences.

Mitosis

A type of cell division resulting in two daughter cells each having the same number and kind of chromosomes as the parent nucleus.

Prokaryotes

Microorganisms characterized by the absence of a distinct nucleus, including bacteria and archaea.

Telomeres

Protective cap-like structures at the ends of chromosomes that prevent the loss of genetic information during cell division.