Reconsider the Goferbroke Co. case study, including the application of utilities in Section 9.9. Max Flyer 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 9.9 as follows: U (- 130) = 0, U (- 100) = 0.07, U (60) = 0.40, U (90) = 0.45, U (670) = 0.99, and U (700) = 1.

a. Analyze the revised decision tree corresponding to Figure 9.23 by hand to obtain the new optimal policy.

FIGURE 9.3: The Decision Tree dialog box used to specify that the initial node of the first Goferbroke problem is a decision node with two branches, Drill and Sell, with values (partial payoffs) of 2100 and 90, respectively.

b. Use RSPE to construct and solve this revised decision tree?

Decision Tree Node Type- C Decision C Terminal Event/Chance Node Name: New Node Down Up Branches: Value Name Drill -100 Sl 90 Cancel