(a) Draw a decision tree to model a contractor’s “to-bid or no-to-bid” decisions. Assign numbers to the decision tree and demonstrate how to calculate the expected values for the decisions. (5%) (b) What is “utility” in decision analysis? (2%) (c) Describe how to obtain utility values from an individual. (5%) (d) Draw a chart showing the utility curves for (I) a gambler, (II) a risk-averse person, (III) a risk neutral person, and (IV) a typical person. Explain why a typical person’s utility curve shapes like that. (3%)

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