Philip Musa can build either a large video rental section or a small one in his Birmingham drugstore. He can also gather additional information or simply do nothing. If he gathers additional?information, the results could suggest either a favorable or an unfavorable?market, but it would cost him ?$4,500 to gather the information. Musa believes that there is a?50-50 chance that the information will be favorable. If the rental market is?favorable, Musa will earn ?$18,000 with a large section or ?$5,000 with a small. With an unfavorable?video-rental market,?however, Musa could lose ?$22,000 with a large section or ?$16,000 with a small section. Without gathering additional?information, Musa estimates that the probability of a favorable rental market is 0.7. A favorable report from the study would increase the probability of a favorable rental market to 0.9. ?Furthermore, an unfavorable report from the additional information would decrease the probability of a favorable rental market to 0.2. Of?course, Musa could ignore these numbers and do nothing. What is your advice to?Musa?

CC. + (0.9) 13,500 large (0.1) - 26,500 (0.9) small 500 2 (0.1) - 20,500 favorable nothing - 4,500 (0.5) (0.2) 13,500 large more (0.8) information - 26,500 1 3 small (0.2) 500 unfavorable (0.8) (0.5) - 20,500 nothing - 4,500 no (0.7) information 18,000 large (0.3) 22,000 4 small (0.7) 5,000 (0.3) - 16,000 nothing 0 Thus, Philip Musa should not gather more information and build a large video section The expected payoff is $ (round your response to the nearest dollar)