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A paint company has three sources for buying bright red pigment for their paints: Vietnam, Taiwan, or Thailand. Unfortunately, the pigment is made from a

A paint company has three sources for buying bright red pigment for their paints: Vietnam, Taiwan, or Thailand. Unfortunately, the pigment is made from a bush whose annual growth is heavily dependent upon the amount of rainfall during the growing season. The tables below show probabilities and prices for wet, dry and normal growing seasons:

Probabilities



Wet

Dry

Normal

Vietnam

0.5

0.2

0.3

Taiwan

0.6

0.3

0.1

Thailand

0.4

0.4

0.2



Wet

Dry

Normal

Vietnam

0.95

1.10

1.00

Taiwan

0.85

1.20

0.98

Thailand

0.90

1.15

1.05

What is the expected value (price) associated with the selected firm?

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