questions attached

(20 points) You do not like your currentjob. You have applied for a dream job and the job interview has gone well but because there are many competitors for the job, the interviewer told you that it will be a month before the company can make a nal decision about whether you will be selected for the dream job. In the meantime, another company offers you a job that is better than your currentjob but not as good as the dream job, and this company requires you to make a decision in 24 hours, and if you decide to accept the offer, there is a one-year binding employment contract so that you will not be able to leave the new position to take the dream job if it is offered to you a month later. You have set the desirabilities or utilities of the dream job and your current job to be 100 and 0 respectively. Let the desirability or utility of the new job offer be B, and clearly, 100>B>O. You have also estimated the probability that you will get the dream job as p. Use the concept of decision tree analysis to develop a decision rule about whether you should wait for the dream job or take the newjob offer based on the values of B and p. (Hint: the logical and creative thought process should go as follows: clearly, if p is 100%, then you definitely should wait for the dream job. On the other hand, if p is 0, then you denitely should accept the new job offer. Similarly, if B is close to 100, then you should take the new job offer unless p is very close to 1. On the other hand, if B is close to 0, then you should wait for the dream job unless p is very close to 0. Thus, the decision rule is as follows: there is a minimum value p* related to the value B such that if the estimated p is greater than p*, you should wait for the dream job; otherwise, take the new job offer. Your work is to develop a procedure to compute the minimum p* in relation to B.)