1. A local radio station (WGIV; Giveaway 93) currently has a giveaway contest under way. Once a contestant is selected, he or she is given two choices: take $93 in cash or pick one of three envelopes. The contents are $500, $100, or merchandise which is esti- mated to be worth $20.

a. Draw the decision tree for this decision.

b. What decision should be made to achieve the highest expected monetary value?