1. A city manager is considering three strategies for a $1,000 investment. The probable returns are estimated as follows: • Strategy 1: A profit of $5, 000 with a probability of 0.20 and a loss of $1, 000 with a probability of 0.80. • Strategy 2: A profit of $2, 000 with a probability of 0.40, a profit of $500 with a probability of 0.30 and a loss of $1, 000 with a probability of 0.30. • Strategy 3: A certain profit of $400. (a) Which strategy has the highest expected profit? (b) If the city manager is going to pick only 1 strategy, which of the three strategies would you definitely advise against? Provide specific (numeric) details to support your answer
