PLEASE ANSWER IN EXCEL

Q1. (40 points) Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering whether he should opt for a subcompact, compact, or full-size pickup truck The smaller truck would have better fuel economy, but would sacrifice capacity and some durability. A friend at the Bureau of Economic Research told him that there is a 30% chance of lower gas prices in his area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices will stay roughly unchanged. The table below indicates the revenue that Miles can make based on which pickup truck he buys in each of the different states of nature. Lower gas prices Probability 0.3 States of Nature Gas prices unchanged 0.5 Higher gas prices 0.2 Alternatives Subcompact Compact Full size 16,000 15,000 18,000 21,000 20,000 19,000 23,000 22,000 6,000 a. Based on the Maximin principle what decision should Miles make? (8 points) b. Based on the Maximax principle what decision should Miles make? (8 points) c. Based on the EMV principle what decision should Miles make? (12 points) d. What should Miles be willing to pay for perfect information about which state of nature will prevail? (12 points)