You are responsible for purchasing 20 used computers for your company. Red brand computers cost $1,250 and green brand computers cost $1,800. Based on experience, you believe that 60% of red brand computers are lemons (low quality) while 20% of green brand computers are lemons (low quality). You are willing to pay $1,000 for a known lemon and $2,000 for a known plum. Which brand do you purchase?
A) red
B) green
C) You are indifferent between brands.
D) You don't buy either brand.

Question

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The Answer of You are responsible for purchasing 20 used computers for your company. Red brand computers cost $1,250 and green brand computers cost $1,800. Based on experience, you believe that 60% of red brand computers are lemons (low quality) while 20% of green brand computers are lemons (low quality). You are willing to pay $1,000 for a known lemon and $2,000 for a known plum. Which brand do you purchase?
A) red
B) green
C) You are indifferent between brands.
D) You don't buy either brand.

You Are Responsible for Purchasing 20 Used Computers for Your