Leah Johnson, director of Legal Services of Brookline, wants to increase capacity to provide free legal advice but must decide whether to do so by hiring another full-time lawyer or by using part-time lawyers.
The table below shows the expected costs of the two options for three possible demand levels:
|
|
|
States Of Nature
|
|
|
Alternatives
|
Low Demand
|
Medium Demand
|
High Demand
|
|
Hire Full Time
|
$300
|
$500
|
$700
|
|
Hire Part Time
|
$0
|
$350
|
$1,000
|
|
Probabilities
|
.2
|
.05
|
.3
|
Using expected value, what should Ms. Johnson do?