As a student at MSU, you agree to abide by the MSU Honor Cod…

As a student at MSU, you agree to abide by the MSU Honor Code: “As a Mississippi State University student I will conduct myself with honor and integrity at all times. I will not lie, cheat, or steal, nor will I accept the actions of those who do.” Please type your name below to indicate compliance with the University Honor Code.    I verify that I have neither given nor received unauthorized assistance on this examination.

Geoff has taken his car to a mechanic for repair. The mechan…

Geoff has taken his car to a mechanic for repair. The mechanic diagnosed the problem and has offered Geoff two possible repairs as a solution: Repair A: The repair costs $750. There is an 80% chance that this repair will solve the problem and no additional work will be needed.  If the repair doesn’t work, an additional repair will cost $400. Repair B: The repair costs $300. There is a 40% chance that this repair will solve the problem and no additional work will be needed.  If the repair doesn’t work, an additional repair will cost $800.  Using Expected Value Theory, which repair should Geoff tell the mechanic to make?  Be sure to show your work.