SCENARIO - I Amelia is a college student majoring in Information Science, which she decided to pursue because of her love of technology. Growing up she also enjoyed cooking, particularly making French-inspired dishes. However, at this point in her life, she doesn't have any formal culinary training and cooks only as a hobby, even though she has always dreamt of owning a restaurant. As a college student getting ready to graduate and move on to the next stage of her life, Amelia needs to figure out if she would make more income continuing towards a career in Information Science or switching her career path and trying to become a chef of her own restaurant. Suppose the payoffs from her decision are a function of the economic climate in the next year. The economy can be weak or strong. High-end restaurants tend to do well only in strong economies whereas the number of tech jobs are expected to stay relatively stable in either type of economy. For the restaurant, she has estimated her annual salary to be $95,000 in a strong economy and $25,000 in a weak economy. For the tech job, she has estimated her annual salary to be $64,000 in a strong economy and $61,000 in a weak economy. She has estimated the probability of a declining economy at 60% and an expanding economy at 40%.SCENARIO - II Suppose that you are deciding whether to buy a $1 lottery ticket. The jackpot is $1.1 million and there is a 1/1,000,000 chance of winning. In addition, you may choose to receive the jackpot as a lump sum immediately or in yearly payments over 4 years. If you choose the lump sum, you only get 75% of the money but you get it all at once. If you choose the yearly payments, you will receive a payment of $275,000 over 4 years with the first payment made in one year. The interest rate is 4% per year