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Texas Petroleum Company is a producer of crude oil that is considering two drilling projects with the following profit outcomes and associated probabilities: The manader's

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Texas Petroleum Company is a producer of crude oil that is considering two drilling projects with the following profit outcomes and associated probabilities: The manader's attitude toward risk is as follows: Note: U(II) stands for utility index of profit. In making decision under risk, which project will be chosen by the manager of Texas Petroleum Company based on his behaviour toward risk? Also describe the manager's ways of handling decision-making associate with risk. Justify your answers using numerical explanation. (25 marks)

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