1. You're looking to work outside this summer and decided to rent some truck/trailer combos to deliver and spread pine-straw and mulch. The following represents the probabilities associated with the number of crews you'll be able to keep busy for the summer. Demand (trucks) 1 2 3 Probability .25 .30 .45 You estimate the summer revenue from a crew (net of fuel and maintenance costs) will be $22000. The cost to rent a truck and pay a crew for the summer is $13,000. a. Complete a payoff table that accurately reflects this situation. b. Determine the expected value, maximum loss and maximum gain for each of the options. c. Indicate which option you would select and why. I 2. You've decided to buy used books at the end of the Spring semester to sell to summer students. You've done some research and found that the textbook requirements for Psych 101 rarely change, so you've decided to buy books from current students in that course. Currently 2000 students are taking the course, so you're confident you'll be able to buy at least 200 books by handing out flyers and posting on a course GroupMe site. There's always a chance that the text requirement could change for the summer, and summer classes can get canceled and there's going to be competition from other book sellers, so you recognize that this is a somewhat speculative adventure. You've decided to pay $30 per book and sell them for $50. Any books you don't sell will go on a bookshelf in your friend's sorority house, because you've got no place to keep them through the summer. Your estimates of demand are given in the following table. Demand 0 50 100 150 200 (Books) Probability 10 .10 .40 30 10 a. Complete a payoff table that accurately reflects this situation. b. Determine the expected value, maximum loss and maximum gain for each of the options. c. Indicate how many books you'll try to buy and why