Patrick Bateman is considering four alternatives Friday night. The payoff for each opportunity will depend on economic and other conditions and are represented in the payoff table below.

4) If the probabilities of each economic condition are 0.5, 0.1, 0.35, and 0.05, respectively, what investment would be made using the expected value criterion?

5)If the probabilities of each economic condition are 0.5, 0.1, 0.35, and 0.05, respectively, what is the expected value of perfect information?

Patrick Bateman is considering four alternatives Friday night. The payoff for each opportunity will depend on economic and other conditions, and are represented in the payoff table below. Poor Average Good Return videotapes 50 25 40 Dinner at Dorsia 80 300 20 Pick up friends in his limo 100 15 25 Design new business cards 25 75 -50 Excellent 25 10 50 30 4) If the probabilities of each economic condition are 0.5, 0.1, 0.35, and 0.05, respectively, what investment would be made using the expected value criterion? 5)If the probabilities of each economic condition are 0.5, 0.1, 0.35, and 0.05, respectively, what is the expected value of perfect information