The Construction Manager for Acme Construction,Inc

Multiple Choice

The construction manager for Acme Construction,Inc.must decide whether to build single-family homes,apartments,or condominiums.He estimates annual profits (in $000) will vary with the population trend as follows: If he feels the chances of declining,stable,and growing population trends are 40%,50%,and 10%,respectively,what is his expected value of perfect information?

A) $187,000
B) $132,000
C) $123,000
D) $65,000
E) $55,000