A Business Owner Is Trying to Decide Whether to Buy

Multiple Choice

A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow. $$\begin{array} { l | c r } \text { Alternative } & \text { Brisk } & \text { Slow } \\\hline \text { Buy } & 90 & - 10 \\\text { Rent } & 70 & 40 \\\text { Lease } & 60 & 55\end{array}$$ If the probability of brisk business is .40 and for slow business is .60, the expected value of perfect information is:

A) 12
B) 55
C) 57
D) 69