Question: 1. After buying a computer system, Sim Thomas must decide whether to purchase (1) a complete maintenance (or service) policy at a cost of $500,

 1. After buying a computer system, Sim Thomas must decide whether

1. After buying a computer system, Sim Thomas must decide whether to purchase (1) a complete maintenance (or service) policy at a cost of $500, which would cover all maintenance costs; (2) a partial maintenance policy at a cost of $300, which would cover some of the costs of maintenance; or (3) no maintenance policy. The consequences, costs and probabilities are given in the following table: (a What strategy do you recommend? (b Perform sensitivity analysis on probability (see p. 72-73 for reference)

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