1.4 Tiffany plans to sell pies that she will buy this evening at a street fair tomorrow. If the weather is nice, she will earn $200; however, if it rains, she will lose

$60, the amount she would pay for the pies that she won’t be able to sell. The weather forecast says that the chance of rain is 25%. What does she expect to earn? How much more would she expect to earn if she had perfect information about the probability of rain far enough before the street fair that she would only buy the pies she could sell? (Hint: See Solved Problem 17.1.) A