A company is considering three alternatives to deal with extra work load (in $100,000) as shown below.If the likelihoods of easy, moderately difficult and extremely difficult are 0.2, 0.4 and 0.4, respectively, what is the expected value (in $100,000) with perfect information?

A)2.68
B)2.94
C)0.26
D)0.16
E)None of the above.

Question

A company is considering three alternatives to deal with extra work load (in $100,000) as shown below.If the likelihoods of easy, moderately difficult and extremely difficult are 0.2, 0.4 and 0.4, respectively, what is the expected value (in $100,000) with perfect information?

A)2.68 
B)2.94 
C)0.26 
D)0.16 
E)None of the above.

Quizplus · Accepted Answer

The Answer of A company is considering three alternatives to deal with extra work load (in $100,000) as shown below.If the likelihoods of easy, moderately difficult and extremely difficult are 0.2, 0.4 and 0.4, respectively, what is the expected value (in $100,000) with perfect information?

A)2.68 
B)2.94 
C)0.26 
D)0.16 
E)None of the above.

A Company Is Considering Three Alternatives to Deal with Extra