Solve the following completely. Draw a diagram for problem #2.

1. Bernard and Sons Incorporated spends 85,000 to prepare bid on a construction project. If the contract is awarded, the estimated revenue will be 700,000. If the contract is not awarded, the company has a penalty of 100,000. There is a 40% chance that the company will be awarded the contract. Find the EV.
2. A casual employee who is not feeling well due to severe cold has to decide whether to go to work or to stay home and rest. If he goes to work, there is a 50% chance of getting sick and spend P700 for medicine. If he stays home and rest, he will deducted P270 from his salary for his absence. Should he go to work or absent?