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The machine shop owner in Problem 15 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 .70 probability that the consultant would present a favorable report, given that the contract is awarded to the shop, and a .80 probability that the consultant would present an unfavorable report, given that the contract is not awarded. Using decision tree analysis, determine the decision strategy the owner should follow, the expected value of this strategy, and the maximum fee the owner should pay the consultant.
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