In Problem S1-24 the Sharks general manager has asked a super scout to assign a probability to each of the three states of nature that may occur for the pitchers during the next 10 years. The scout estimates that there is a .08 probability that these pitchers at this stage of their careers will have no injuries, a .56 probability that they will have a career with the normal amount of injuries, and
a .36 probability that they will have excessive injuries. (a) Using expected value, determine the best pitcher to sign.
(b) Given the following 10-year contract price for each pitcher (in $ millions), which would you recommend signing?
(c) Suppose that the general manager asked the super scout to determine the probabilities of each state of nature for each individual pitcher, as follows:
Determine the expected number of wins for each pitcher, and combined with the contract price in part
(b), indicate which pitcher you would recommend signing.