Question 7 A nuclear power company is deciding whether or not to build a nuclear power plant at Diablo Caryon or at Aoy Pcgers City. The cest ef Rot yet building the power plant is $10 milion at Diable and $20 million at Roy Rogers City. If the cormpany buids at Diablo, howevet, and an Earthquake occurs at Diablo during the next tive years, construction will be tecminated, and the company will lose sio malion iand wid stil have to build a power plant at Roy Rogers City). A peiori, the company believes thece is a 20% chance that an earthquake will occur at Diablo during the next five years. For $1 million, a geologist can be hired to analyze the faul structure at Dlabio Camyan. He Ais either predict that an earthquake wil occur or that an earthquake wil not occur. The geologist' past record indicates that ne wit prodict an earthquake on 95% of the occasions for which an earthquake will occur and no eartheuake an 90% of the occasions for which an earthquake will not occur. Should the power company hire the geologist? Afso find EVSi and EVAs. a. The power company should not hire the geologist. b. Maybe c. The power company should hire the geologist d. No wayl