Suppose that Warren Buffett is considering buying Mysterious Practices, Inc. (MPI). Due to financial distress unrelated to MPI's operations, MPI's current ownership has fallen on hard times and is considering selling the company. As it turns out, Buffett is the only potential buyer for MPI before it is eventually liquidated.

Buffett can make a single take-it-or-leave-it offer to MPI, and he judges that there are four possible scenarios for the technology MPI is currently using. Each scenario is equally likely. Moreover, suppose that (for now, at least) there is nothing Buffett can do to distinguish between the four possible scenarios.

(in billions)	Buffett's valuation	Current owner's valuation
Cutting-edge technology	$3.0	$2.0
Efficient technology	$2.0	$1.5
Average technology	$1.5	$1.0
Antiquated technology	$0.5	$0.2

You can assume that MPI's current owners would accept an offer equal to their valuation, and that they know what the state of their technology is. Question: 3.) What price would you advise Buffett to offer, assuming that you have no more information than he does? What would his profits be? Be sure to fully explain your reasoning.