Question 1. A company with a limited budget needs to choose between two marketing strate- gies for its new product. Strategy 1 requires an upfront investment of $50,000 and will generate a revenue of $80,000 with probability 0.15, $140,000 with probability 0.45, and $150,000 with probability 0.4. Strategy 2 will generate a revenue of $210,000 for sure, and its cost to the company will be $190,000 with probability 0.2 and $100,000 with probability 0.8. The revenue of strategy 1 and the cost of strategy 2 are independent. (a) (10 pts) What is the expected value of perfect information on the revenue of strategy 1? (b) (10 pts) What is the expected value of perfect information on the cost of strategy 2? (c) (15 pts) What is the expected value of perfect information of the revenue of strategy 1 and the cost of strategy 2? How does this value compare to the values in (a), (b) and their sum? Is it intuitive? Why or why not? (d) (10 pts) How would your calculations in (a)-(c) change if the revenue of strategy 1 and the cost of strategy 2 were dependent? Give a simple specific numerical example to illustrate. Answer (a)-(c) for this example