Question: Using the expected opportunity loss criterion, which building project would you invest in? Also, what is the value of Perfect Information? You have a choice

Using the expected opportunity loss criterion, which building project would you invest in?

Also, what is the value of Perfect Information?

You have a choice of three building projects to put your money in, Office Suits, Retail Outlets, or Small Manufacturing Spaces. Each project offers a certain payoff depending on the market conditions. The following payoff table was developed by your best financial analyst and economic analyst: Probabilities 4 .4 .2 Poor Market Steady Market Better Market Building Options Conditions Conditions Conditions Office Suits 10000 15000 40000 Retail Outlets 17000 18000 19000 Small Manufacturing Spaces 15000 17000 30000

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