'1. The ICtlccupational Safety and Health Administration [OSHA] has recently announced it will award an ssooo research grant to the person or company submitting the best proposal for using wireless communications technology to enhance safety in the coal mining industry. Steve Hinton, the owner of COM-TECH, a small communications fi rm located just outside of Raleigh, North Carolina, is considering whether or not to apply for this grant. Steve estimates he would spend approximately $5000 preparing his grant proposal and that he has about 50-50 chance of actually receiving the grant. If he is awarded the grant, he would then need to need to decide whether to use microwave, cellular, or infrared communications technology. He has some euqaerie nce in all three areas but would need to acquire some equipment depending on which technology is used. The cost of the equipment needed for each technology is summarized as: Technology Cellular In addition to the equipment costs, Steve knows he will spend money in research and development [HELD] to carry out the research proposal, but he does not know exactly what the R&D costs will be. For simplicity, Steve estimates the following best-case and worst-case REtD costs associated with using each technology, and he assigns probabilities to each outcome based on his degree of expertise in ea ch area. Possible RELD oosts [given that the grant is awarded} _ cellular Mm... mom Steve needs to synthesize all the factors in this problem to decide whether or not to submit a grant proposal to OSHA. a] What is the optimal strategy for COM -TECH? b] What is the expect return associated with the optimal policy? c] If Steve is awarded the grant, which technology he should use