The business school at Tidewater College needs to replace its copier. The dean is considering three different Canon models€” the 100, 200, and 300 series. The 100 series copier is the least expensive model but will have higher maintenance costs than the other models if it€™s used heavily. The 300 series model is the most expensive model and will have lower maintenance costs than the other models with heavy usage. The 200 series model has maintenance costs that lie between the other two models. The payoffs will depend on the number of copies made with the models and are shown in the following decision table along with the probabilities. A negative payoff represents a cost.

a. Which copier should Tidewater College purchase using decision making under risk?
b. What is the most that Tidewater College should pay for additional information?

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Copier's Usage Low Moderate High 100 Series $40,000 $50,000$65,000 200 Series$50,000 40.000$55,000 300 Series $75,000$60,000 $45,000 Probability 024 0.36 0.40