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3) The Goferbroke Company owns a tract of land that may contain oil. Because of this prospect, another oil company has offered to purchase the

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3) The Goferbroke Company owns a tract of land that may contain oil. Because of this prospect, another oil company has offered to purchase the land for $90,000. However, Goferbroke is consider the land in order to drill for oil itself. ing holding The cost of drilling is $100,000. If oil is found, the resulting expected revenue will be $800,000. Using the five criteria of decision making under uncertainty decide whether to drill or sell based just on these data (for the criterion of realism use a value of 0.8). (20 points)

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