You are at an auction Columbus, trying to decide whether to bid $9,000 on an old tractor. You believe that you have a 3/5 probability of reselling the tractor in Athens for $12,000, and a 1/5 probability of reselling the tractor in Pomeroy for $10,000. Otherwise, you will have to keep the tractor, an option that has some benets, considering that you live on an old goat farm. What is the expected value if you make the bid? When all factors are taken into account, an insurance company estimates that the probability of my father making a claim for damages to his pontoon boat for $4000 is 0.125, and that the probability of the pontoon boat being totally destroyed is .01. Should that tragedy happen, the company will have to pay $12,000. The company charges my father $1000 for the insurance policy. What is the expected value of this policy to my father? A) Build the probability model that describes this situation. B) Find the Expected Value to my father. C) Find the Expected Value to the Insurance Company. D) Interpret the Expected Values