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A developer is considering purchasing some land to develop into housing. Two sites are available that have recently been rezoned as residential: an industrial site

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A developer is considering purchasing some land to develop into housing. Two sites are available that have recently been rezoned as residential: an industrial site and an agricultural site. However, both sites come with a risk of soil contamination. The industrial site is close to the center of town so developing this site is expected to result in a profit of $5300000. However, there is a 0.34 that there will be minor contamination of the site requiring a cleanup cost of $4000000, and a 0.2 that there will be major contamination of the site requiring a cleanup cost of $7500000. The agricultural site is on the edge of town so developing this site is expected to result in a profit of only $2700000. If this site is contaminated it will be easier to cleanup. Thus, there is a 0.34 that there will be minor contamination of the site requiring a cleanup cost of $500000, and a 0.1 that there will be major contamination of the site requiring a cleanup cost of $1600000. Unless there is no contamination the cleanup cost will need to be deducted from the expected profit. The developer is risk averse. They have quantified this preference using the following utility curve: Utility = 100 * (1 - exp(-(profit or loss)/5000000)) which gives positive utility for a profit and negative utility for a loss. The developer is only able develop one of the sites and will develop neither site if both expected utility values are negative. Create the decision tree for this problem using the app below and add all probabilities and utility values. In the case of decisions please use probability = 1 for options that are chosen and probability = 0 for options that are rejected. All probability values should be answered to three decimal places. All utility values should be answered to one decimal place. Don't forget the negative signs

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