Toure and N'Guessan have known each other since high school. Two years ago they entered the same university and today they are taking undergraduate courses in the business school. Both hope to graduate with degrees in finance. In an attempt to make extra money and to use some of the knowledge gained from their business courses, Toure and N'Guessan have decided to look into the possibility of starting a small company that would provide word processing services to students who needed term papers or other reports prepared in a professional manner. Using a system approach, Toure and N'Guessan have identified three strategies. Strategy 1 is to invest in a fairly expensive microcomputer system with a high-quality laser printer. In a favorable market, they should be able to obtain a net profit of $10,000 over the next two years. If the market is unfavorable, they can lose $8,000. Strategy 2 is to purchase a less expensive system. With a favorable market, they could get a return during the next two years of $8,000. With an unfavorable market, they would incur a loss of $4,000. Their final option, strategy 3, is to do nothing. Toure is basically a risk taker, whereas N'Guessan tries to avoid risk. a. What type of decision procedure should Toure use (present the appropriate criterion)? What is the corresponding decision Toure could make? Do not forget to build a table with the states of the nature and the different strategies. b. What type of decision criteria should N'Guessan adopt? Suggest two criteria and present the corresponding decision N'Guessan would make. Once again, do not forget to build needed tables with the states of the nature and the different strategies. c. If Toure and N'Guessan were indifferent to risk, what type of decision approach should they use? What would you recommend if this were the case? d. If the probability for a market to be favorable is 2/5, find the expected value of the perfect information (EVPI) for each of them. Comment the results