Question: Refer to the food-processor case study presented in Chapter 7 of the textbook. Using the final decision tree shown below to answer the following questions.

Refer to the food-processor case study presented

Refer to the food-processor case study presented in Chapter 7 of the textbook. Using the final decision tree shown below to answer the following questions. $6.75 m -$3.1 m ccess $6 m 10.3 Success Success Jon 0.75 $3 m Failure Failurer > Modify design 0.7 -$7 m 0.25 A Aban Abandon project $3m $11.24 m Develop electric powered design Develop gas-powered design $11.24 m $5.6 m Success_$10 m 0.8 on success_$15 m 0.6 $5.6 m design Failure Failure 0.2 -$12 m 0.4 Abandon project Do not develop the product $1 m Question 2: Using the risking-seeking utility function compute (Rolling Back Method) and identify the optimal decision option for developing the new food processing design (1.5 points). Payoff ($M) Utility B Utility C 0.65 0.8 0.85 0.94 0.97 0.97 0.94 0.85 0.8 0.65 0.19 0.33 0.44 0.67 0.81 10 15 Refer to the food-processor case study presented in Chapter 7 of the textbook. Using the final decision tree shown below to answer the following questions. $6.75 m -$3.1 m ccess $6 m 10.3 Success Success Jon 0.75 $3 m Failure Failurer > Modify design 0.7 -$7 m 0.25 A Aban Abandon project $3m $11.24 m Develop electric powered design Develop gas-powered design $11.24 m $5.6 m Success_$10 m 0.8 on success_$15 m 0.6 $5.6 m design Failure Failure 0.2 -$12 m 0.4 Abandon project Do not develop the product $1 m Question 2: Using the risking-seeking utility function compute (Rolling Back Method) and identify the optimal decision option for developing the new food processing design (1.5 points). Payoff ($M) Utility B Utility C 0.65 0.8 0.85 0.94 0.97 0.97 0.94 0.85 0.8 0.65 0.19 0.33 0.44 0.67 0.81 10 15

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