Kate is organizing a special outdoor show which will take place on August 15. The earnings from the show will depend heavily on the weather. If it rains on August 15, the show will lose $20,000; if it is sunny on August 15, the show will earn $15,000. Historically, the likelihood of rain on any given day in mid-August is 27%. Suppose that today is July 31 and Mary has the option of cancelling the show by the end of today. If she does so, she will then lose her $1000 deposit for booking of the event facilities. (a) Determine Kate’s optimal decision strategy given the above information

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