Consider the data given in problem 14. Based on some preliminary information provided by BMW, Jan Kang estimates that the following probabilities hold for the states of nature: P(Poor review) = .10,...

Consider the data given in problem 14. Based on some preliminary information provided by BMW, Jan Kang estimates that the following probabilities hold for the states of nature: P(Poor review) = .10, P(Good review) = .15, P(Very Good review) = .25, and P(Excellent review) = .35.

a. Calculate the probability of an Outstanding review and use the expected value criterion to determine how many SUV’s King’s should order.

 b. What is the most amount of money King’s should pay for advance information regarding the review the SUV will get from Road and Track.