You Are Responsible for Purchasing 20 Used Computers for Your

Multiple Choice

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.