Alexander Industries is considering purchasing an insurance
policy for its new office building in St. Louis, Missouri. The
policy has an annual cost of $10,000. If Alexander Industries
doesn’t purchase the insurance and minor fire damage occurs, a cost
of $100,000 is anticipated; the cost if major or total destruction
occurs is $200,000. The costs, including the state-of-nature
probabilities, are as follows:NoneMinorMajorDecision Alternatives1s2s3Purchase insurance, d110,00010,00010,000Do not purchase insurance, d20100,000200,000Probabilities0.960.030.01What lottery would you use to assess utilities? (Note:
Because the data...