Super cola is cnsidering the introduction of a new 8 oz. root beer. the probability that the root beer will be a success is believed to be 0.6. The payoff table is as follows
Success(s1) Failure(s2)
produce $250,00 -300,000
do not produce -$50,000 -$20,000
Company maagement has determined the following utility values
amount $250,000 -$20,000 -$50,000 -$30,000
utility 100 60 55 0
a. is the company a risk taker, risk averse, or risk neutral? Explain why you chose your answer
b. What is the super cola's optimal decision? Explain