Question: The following is a payoff table giving profits for various situations. States of Nature Alternatives A B C Alternative 1 100 120 100 Alternative 2

The following is a payoff table giving profits for various situations. States of Nature Alternatives A B C Alternative 1 100 120 100 Alternative 2 200 100 50 Alternative 3 120 140 120 Do Nothing 0 0 The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a perfect forecast of the future were available, what is the expected value with this perfect information? C) 154 A) 130 (D) 36 O B) 160

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