A Former Politician,who Is Now the Owner of an Ottawa

Multiple Choice

A former politician,who is now the owner of an Ottawa consulting firm,is trying to decide whether to hire one,two,or three consultants.He estimates that profits next year (in thousands of dollars) will vary with demand for his consulting services as follows: If he feels the chances of low,medium,and high demand are 50%,20%,and 30%,respectively,what is his expected value of perfect information?

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