Leah Johnson, director of Legal Services of Brookline, wants to increase capacity to provide free legal advice but must decide whether to do so by hiring another full-time lawyer or by using part-time lawyers. The table below shows the expected costs of the two options for three possible demand levels:

(a) Using expected value, what should Ms. Johnson do?
(b) Draw an appropriate decision tree showing payoffs andprobabilities.

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States of Nature Medium Demand $500 $350 High Demand S 700 $1,000 .3 Low Demand $300 Alternatives Hire full-time Hire part-time Probabilities 2