Suppose now that this is a relatively big project for Chang. Therefore, she decides to use expected utility as her criterion, with an exponential utility function. Using some trial and error, see which risk tolerance changes her initial decision from “go ahead” to “abandon” when p1 = 0.4, p2 = 0.8, and p3 = 0.1.
Uncertainty Read Case 6.3: Electronic Timing System for Olympics (below). For this assignment, you will assess and use the correct support tool to develop a decision tree as described in Part “a” of Case 6.3. Analyze and apply the best decision-making process to provide answers and brief explanations for parts “a”, “b”, “c”, and “d”. […]