A plant manager wants to know, based on investing in market research, what is overall payout would be$.$ Currently there are two alternatives facing his decision $-($expand or subcontract work out$).$ Under favorable market conditions the manager would make $$75,000$ for the expansion and $$5,000$ utilizing subcontracting as an option. Under unfavorable market conditions the expansion would lose $$50,000$ and by subcontracting make $$3,500.$ For each alternative the cost of the research is $$2,500$

If the two states of nature are equally likely to occur, answer the following questions:

a$.$ What is the EMV for expanding?

$[$ Select $]$

b$.$ What is the EMV for subcontracting?

$[$ Select $]$

c$.$ What decision should be made based on the overall profit$/$loss$?$

$[$ Select $]$