=9.35. Reconsider the Goferbroke Co. case study, including the application of utilities in Section 9.9. Max Flyer now has decided that, given the company’s precarious financial situation, he needs to take a much more risk-averse approach to the problem.

Therefore, he has revised the utilities given in Table 9.9 as follows: U( 130) 0, U( 100) 0.07, U(60) 0.40, U(90)

0.45, U(670) 0.99, and U(700) 1.

a. Analyze the revised decision tree corresponding to Figure 9.28 by hand to obtain the new optimal policy.

A

b. Use TreePlan to construct and solve this revised decision tree.