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providin The president of a firm in a highly competitive industry believes that an employee of the company is confidential information to the competition. She

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providin The president of a firm in a highly competitive industry believes that an employee of the company is confidential information to the competition. She is 90 percent certain that this informer is the treasu the firm, whose contacts have been extremely valuable in obtaining financing for the company. If she e him and he is the informer, the company gains $100000. If he is fired but is not the informer, the co loses his expertise and still has an informer on the staff, for a net loss to the company of $500000 president does not fire the treasurer, the company loses $300000 whether or not he is the informer in either case the informer is still with the company ny is providing urer of 18.22 If the informer, since Before deciding the fate of the treasurer, the president could order lie detector tests. To avoid possible lawsuits, such tests would have to be administered to all company employees, at a total cost of $30000 Another problem is that lie detector tests are not definitive. If a person is lying, the test will reveal it 90 percent of the time: but if a person is not lying, the test will indicate it only 70 percent of the time. What actions should the president take

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