You Are Evaluating Investment Alternatives for a Ski Resort

Multiple Choice

You are evaluating investment alternatives for a ski resort.There are four alternative investments and their payoffs (in $10,000s) are shown in the following table,depending on the snow conditions for the next season. If you use the EMV criterion,and the probability that the snow conditions are good is p,what is the expected monetary payoff with perfect information?

A) It cannot be determined without a numeric value for the probability p.
B) 18p − 12
C) 17p − 1
D) 18p − 12.
E) 17p + 1