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Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering
Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering whether he should opt for a subcompact, compact, or fullsize pickup truck. The smaller truck would have better fuel economy but would sacrifice capacity and some durability. A friend at the Bureau of Economic Research told him that there is a chance of lower gas prices in his area this year, a chance of higher gas prices, and a chance that gas prices will stay roughly unchanged. Based on this information, Miles has developed a decision table that indicates the profit amount he would end up with after a year for each combination of truck and gas prices.
tableStates of NatureAlternativesLower gas prices,tableGas pricesunchangedHigher gas pricesProbabilitySubcompactCompactFull size,
Under risk context, what is the expected monetary value EMV for alternative "Full size"?
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