A Decision Maker's Worst Option Has an Expected Value of $1,000

question 124

Multiple Choice

A decision maker's worst option has an expected value of $1,000, and her best option has an expected value of $3,000. With perfect information, the expected value would be $5,000. What is the expected value of perfect information?

• A)$5,000
• B)$4,000
• C)$3,000
• D)$2,000
• E)$1,000

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Definitions:

Linked Lists

A linear data structure where each element is a separate object called a node, with nodes linked using pointers.

Data Items

Individual units of data, such as variables or constants, used in programming to store values.