Super Cola is considering the introduction of a new 8 oz. root beer. The probability that the root beer will be a success is believed to equal 0.6. The payoff table is as follows:

	Success (s1)	Failure (s2)
Produce	$250,000	-$300,000
Do Not Produce	-$50,000	-$20,000

Company management has determined the following utility values:

Amount	$250,000	-$20,000	-$50,000	-$300,000
Utility	100	60	55	0

a. What is the Expected Utility of each of Super Cola’s decision alternatives?

b. Is the company a risk taker, risk averse, or risk neutral?

c. What is Super Cola's optimal decision?