Given the Following Table, Calculate the Expected Value of Perfect

question 17

Short Answer

Given the following table, calculate the expected value of perfect information.
$\begin{array}{c|ccc|r}&\text { Low } & \text { Medium } & \text { High } & \text { Expected } \\&\text { Demand } & \text { Demand } & \text { Demand } & \text { Value } \\\hline\text { Small } \mathrm{d}_{1} & \$ 400 & \$ 400 & \$ 400 & \$ 400 \\\text { Medium } \mathrm{d}_{2} & \$ 100 & \$ 600 & \$ 600 & \$ 500 \\\text { Large } \mathrm{d}_{3} & -\$ 300 & \$ 300 & \$ 900 & \$ 450 \\\hline \text { Probability } & 0.20 & 0.35 & 0.45 &\end{array}$

Recognize and explain the impact of the internet on privacy and security.

Distinguish between various forms of online fraudulent practices and legal implications.

Understand the operational and strategic implications of e-business in the B2B and B2C contexts.

Recognize the role and impact of auctions in e-commerce.

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Definitions:

Misrepresentation

The act of giving a false or misleading statement about a material fact, with the intent to deceive or mislead.

Observable Behaviors

Actions or reactions of an individual in various situations, that are visible and can be measured or recorded.

Reference Checks

The process of contacting a job applicant's previous employers, colleagues, or other contacts to gain insights into their employment history, qualifications, and character.

Equal Employment Opportunity

A principle that asserts all individuals should have the same chance for employment regardless of race, gender, age, or other non-merit factors.