Question: After reading about economic predictions, Debbie Gibson (see Problem 8-16) has assigned the probability that the economy will be strong, average, and weak at 0.2,

After reading about economic predictions, Debbie Gibson (see Problem 8-16) has assigned the probability that the economy will be strong, average, and weak at 0.2, 0.35, and 0.45, respectively.
(a) Using EMYs, what option should Debbie choose? What is the maximum EMV?
(b) Using EOL, what option should Debbie choose? What is the minimum EOL?
(c) Compute the EVPI and show that it is the same as the minimum EOL.

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