Question: Question 17 (3 points) Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing,

Question 17 (3 points) Miles is considering
Question 17 (3 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 gay prices will stay roughly unchanged. Based on this information, Miles has developed a decision table that indicates the profit amount he would end up with after a year for each combination of truck and gas prices States of Nature Gas prices Alternatives Lower gas prices unchanged Higher as prices Probability 3 Subcompact 15.000 20.000 21.000 Compact 18,000 19.000 16.000 16,000 21,000 22,000 Full size Under risk context, what is the expected monetary value (EMV) for alternative "Compact

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