2 The decision sciences department is trying to determine which of two copying machines to purchase. Both machines will satisfy the department’s needs for the next ten years.

Machine 1 costs $2,000 and has a maintenance agreement which, for an annual fee of $150, covers all repairs. Machine 2 costs $3,000, and its annual maintenance cost is a random variable. At present, the decision sciences department believes there is a 40% chance that the annual maintenance cost for machine 2 will be $0, a 40% chance it will be $100, and a 20% chance it will be $200.
Before the purchase decision is made, the department can have a trained repairer evaluate the quality of machine