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 percent, 50 percent, and 10 percent, respectively, what is his expected value of perfect information?

A)  $187,000
B)  $132,000
C)  $122,000
D)  $64,000
E)  $55,000