Napoleon is contemplating four institutions of higher learning as options for a Masters in Business Administration. Each university has strong and weak points and the demand for MBA graduates is uncertain. The availability of jobs, student loans, and financial support will have a significant impact on Napoleons ultimate decision. Vanderbilt and Seattle University have comparatively high tuition, which would necessitate Napoleon take out student loans resulting in possibly substantial student loan debt. In a tight market, degrees with that cachet might spell the difference between a hefty paycheck and a piddling unemployment check. Northeastern State University and Texas Tech University hold the advantage of comparatively low tuition but a more regional appeal in a tight job market. Napoleon gathers his advisory council of Jim and Pedro to assist with the decision. Together they forecast three possible scenarios for the job market and institutional success and predict annual cash flows associated with an MBA from each institution. All cash flows in the table are in thousands of dollars.

Napoleon set the university decision aside for a few days and had forgotten about it completely until one night when his frequent dining companion Pedro visited his house and they retired to the living room for an aperitif,"what you must do my friend," Pedro began, "is to declare your coefficient of realism, which can be tricky." After 45minutes of intense concentration, the cold, calculating Napoleon decided that he would be indifferent between attending Vanderbilt and keeping his current job that will pay $34,100 annually under any of the three stated foreseeable scenarios. 1. What is his implied coefficient of realism? ________________; 2. What is the expected value of perfect information for his decision making if scenarios 1-3 are .3, .4 and .3 respectively? $___________

School	Scenario 1	Scenario 2	Scenario 3
Vanderbilt	95	20	-10
Texas Tech	55	60	60
Seattle	90	10	80
Northeastern State	65	50	6