Reconsider the Goferbroke Co. prototype example, including the application of utilities in Sec. 16.6. The owner now has decided that, given the company’s precarious financial situation, he needs to take a much more risk-averse approach to the problem. Therefore, he has revised the utilities given in Table 16.7 as follows: U(–130) = 0, U(–100) = 0.1, U(60) = 0.4, U(90) = 0.45, U(670) = 0.985, and U(700) = 1.
(a) Analyze the revised decision tree corresponding to Fig. 16.16 by hand to obtain the new optimal policy.
(b) Use ASPE to construct and solve this revised decision tree.