vent $1$ Event $2$

Probability $0\mathrm{.}60\mathrm{.}4$

Alternative $150,000-40,000$

Alternative $230,000-20,000$

Alternative $300$

Goleb Transport

George Goleb is considering the purchase of two types of industrial robots.

The Rob$1($alternative $1)$ is a large robot capable of performing a variety of tasks, including welding and painting. The Rob$2$

$($alternative $2)$ is a smaller and slower robot, but it has all the capabilities of Rob$1.$

The robots will be used to perform a variety of repair operations on large industrial equipment.

Of course, George can always do nothing and not buy any robots $($alternative $3).$

The market for the repair operation could be either favorable $($event $1)$ or unfavorable $($event $2).$

George has constructed a payoff matrix showing the expected returns of each alternative and the probability of a favorable or

unfavorable market. The data are presented:

What decision should George make based on expected monetary value? Expand on the table and calculate below.

Then write$/$ indicate what the best solution for Rob is$.$