Question: 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

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:

	MAINTENANCE REQUIRED	NOT REQUIRED
No Service Agreement	$3,000	$0
Partial Service Agreement	$1,500	$300
Complete Service Agreement	$500	$500
Probabilities	0.2	0.8

Using EMV, what do you recommend?

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