4. Bulloch County never has allowed liquor to be sold in restaurants. However, in three months, county residents are scheduled to vote on a referendum to allow liquor to be sold by the drink. Currently, polls indicate a 60% chance that the referendum will be passed by voters. Phyllis Jackson is a local real estate speculator who is eyeing a closed restaurant building that is scheduled to be sold at a sealed bid auction. Phyllis estimates that if she bids $1.3 million, there is a 25% chance she will obtain the property; if she bids $1.5 million, there is a 45% chance she will obtain the property, and if she bids $1.9 million, there is an 85% chance she will obtain the property. If she acquires the property and the referendum passes, Phyllis believes she could then sell the restaurant for $2.25 million. However, if the referendum fails, she believes she could sell the property for $1.2 million. (a) Using Radiant/R. or by hand, develop a decision tree for this problem. Using the EMV criterion, should Phyllis bid for the restaurant? If so, what should she bid? (b) Develop a new decision tree (by hand or in Radiant/R) for the case where you have perfect information regarding the outcome of the referendum. What is the EMV of Phyllis's bidding decision with perfect information and what is the EVPI