5 Public service Indiana (PSI) is considering two sites for a nuclear power plant. The following two attributes will influence its determination about where to build the plant:

Attribute 1 Cost of the plant (in millions of dollars)

Attribute 2 Acres of land damaged by building the plant Assume that PSI’s multiattribute utility function is given by u1(x1, x2) .70u1(x1)

.20u2(x2)

.10u1(x1)u2(x2), where u1(x1) .1 exp(.1x1) and u2(x2) 2.5 2.5 exp(.0006x2 .48).

Two locations for the power plant are under consideration.

Location 1 is equivalent to the following lottery:

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.50 (50, 300) .50 (30,400) and location 2 is equivalent to the following lottery: .50 (60, 200) 50 Which location should be chosen? (15,600)