There Is an Option of Paying $100 to Have Research

question 66

Multiple Choice

There is an option of paying $100 to have research done to better predict which state of nature will occur.When the true state of nature is S1,the research will accurately predict S1 60% of the time.When the true state of nature is S2,the research will accurately predict S2 80% of the time.
-What is the expected value of perfect information?

• A)40
• B)45
• C)75
• D)85
• E)100

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Definitions:

Need for Cognition

A personality trait that indicates the level of enjoyment a person gets from engaging in and solving challenging mental activities.

Trait Theory

A perspective in psychology that posits personality is composed of a set of stable characteristics or traits that influence individual behaviors and thoughts.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts such as the collective unconscious and archetypes.

Marketing Messages

Communication strategies used by marketers to convey the value and benefits of products or services to potential customers.