A clinic decides to adopt an EHR system. The CIO must decide whether to purchase the entire system or do a pilot project first. If the office implements the entire system, the net benefits are $200,000 (good), $50,000 (mediocre) or -300,000 (bad). The net benefits of the system to the office depends on whether the system works good, mediocre or bad. The probabilities of being good, mediocre or bad are 0.3, 0.6 and 0.1 respectively.
A clinic decides to adopt an EHR system. The CIO must decide whether to purchase the entire system or do a pilot project first.…