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4. Susan has been thinking about starting her own independent gasoline station. Susan's problem is to decide how large her station should be. The annual

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4. Susan has been thinking about starting her own independent gasoline station. Susan's problem is to decide how large her station should be. The annual returns will depend on both the size of her station and several marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Susan developed the following table: (5+5 = 10 points) Chapter 3 Size of Gas Good Market ($) Poor Market ($) EMV Station Small 50, 000 -10, 000 Medium 80, 000 -20, 000 Large 100, 000 -40, 000 Very Large 300, 000 -160, 000 Probability 0.6 0.4 a) Calculate the EMVs (in the table) b) What decision would maximize the EMV (best EMV)

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