Suppose that a decision maker has the opportunity to invest in an oil well drilling operation that has a .3 chance of yielding a profit of $1,000,000, a .4 chance of yielding a profit of $400,000, and a .3 chance of yielding a profit of −$100,000. Also, suppose that the decision maker's utilities for $400,000 and $0 are .9 and .7.
Find the expected utility of the oil well drilling operation. Find the expected utility of not investing. What should the decision maker do if he/she wishes to maximize expected utility? (Round your answers to 2 decimal places.)
Expected Utility (investing): Expected Utility (Not investing): Decision maker invest.