The machine shop owner is considering hiring a military consultant to ascertain whether the shop will get the government contract. The consultant is a former military officer who uses various personal contacts to find out such information. By talking to other shop owners who have hired the consultant, the owner has estimated a 0.75 probability (P(F) = 0.75 ) that the consultant would present a favorable report, given that the contract is awarded to the shop, and a .80 probability (P(Un) = 0.80) that the consultant would present an unfavorable report, given that the contract is not awarded. Required:
Using decision tree analysis, determine the decision strategy the owner should follow, the expected value of this strategy, and