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Question: alternatives good fair poor open 1 380000 70000 400000 open...

Question details
alternatives good fair poor
open 1 380000 70000 -400000
open 2 200000 80000 -200000
do nothing 0 0 0

Nick has plans to open some pizza restaurants, but he is not sure how many to open. He has prepared a payoff table to help analyze the situation. Nick believes there is a 40 percent chance that the market will be good, a 30 percent chance that it will be fair, and a 30 percent chance that it will be poor. A market research firm will analyze market conditions and will provide a perfect forecast (they provide a money back guarantee). What is the maximum nick should be willing to pay for perfect information? 53,000 176,000 123,000 132,000 280,000

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