The Construction Manager for Acme Construction, Inc If He Feels the Chances of Declining, Stable, and Growing

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: $$\begin{array} { | l | l | l | l | } \hline { \text { Type } } & { \text { POPULATION TREND } } \\\hline & \text { Declining } & \text { Stable } & \text { Growing } \\ \hline \text { Single Family } & 200 & 90 & 70 \\\hline \text { Apartments } & 70 & 170 & 90 \\\hline \text { Condos } & - 20 & 100 & 220 \\\hline\end{array}$$ 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) $123,000
D) $65,000
E) $55,000