Reconsider the Goferbroke Co. prototype example, including the application of utilities in Sec. 15.5. The owner 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 15.4 as follows: u(130) 200, u(100) 130, u(60) 60, u(90) 90, u(670) 440, and u(700) 450.

(a) Analyze the revised decision tree corresponding to Fig. 15.15 by hand to obtain the new optimal policy.

A

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