Based on the Finical accounting theory( William R. Scott)Ch1-CH5

What amounts would reflect a fully informative, information system; an information system that perfectly reveals the true state of nature (ie, under ideal conditions). State Current financial statement evidence Good News Bad News High Box #1 Box #2 Low Box #3 Box #4 Box #1 = 0.95; Box #2 = 0.05; Box #3 = 0.05; Box #4 = 0.95 Box #1 = 1.00; Box #2 = 1.00; Box #3 = 1.00; Box #4 1.00 Box #1 = 1.00; Box #2 = 0.00; Box #3 = 0.00; Box #4 = 1.00