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please solve show work and choose from answers A-E An oil magnate can buy a piece of land for $900,000. She believes that there is
please solve show work and choose from answers A-E
An oil magnate can buy a piece of land for $900,000. She believes that there is a .5 probability of no oil, a 3 chance of one well, and a 2 chance of two wells. She will make $1,000,000 for each well on the land. What should she do? (A) Buy. (B) Buy with probability .5 (C) Take the randomized minimax action and buy with probability 1/3 (D) Buy with probability .25 (E) Do not buyStep by Step Solution
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