Aplant manager wants to know how much he should be willing to pay for perfect market research. currently there are two states of nature facing his decision to expand or do nothing. under favorable market conditions the manager would make $100,000 for the large plant and $5,000 for the small plant. under unfavorable market conditions the large plant would lose $80,000 and the small plant would make $0. if the two states of nature are equally likely, how much should he pay for perfect information?
a. 55,000b. $25,000c. unable to determine with this informationd. $15,000e. $0

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Robber, police man/ woman interrogator, detective(s), witnesses