The government is attempting to determine whetherimmigrants should be tested for a contagious disease. Let’sassume that the decision will be made on a financial basis.Assume that each immigrant who is allowed into the countryand has the disease costs the United States $100,000, andeach immigrant who enters and does not have the diseasewill contribute $10,000 to the national economy. Assumethat 10% of all potential immigrants have the disease. Thegovernment may admit all immigrants, admit no immigrants,or test immigrants for the disease before determiningwhether they should be admitted. It costs $100 to test aperson for the disease; the test result is either positive ornegative. If the test result is positive, the person definitelyhas the disease. However, 20% of all people who do havethe disease test negative. A person who does not have thedisease always tests negative. The government’s goal is tomaximize (per potential immigrant) expected benefits minusexpected costs. Use a decision tree to aid in this undertaking.Also determine EVSI and EVPI.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
The government is attempting to determine whether
immigrants should be tested for a contagious disease. Let’s
assume that the decision will be made on a financial basis.
Assume that each immigrant who is allowed into the country
and has the disease costs the United States $100,000, and
each immigrant who enters and does not have the disease
will contribute $10,000 to the national economy. Assume
that 10% of all potential immigrants have the disease. Thegovernment may admit all immigrants, admit no immigrants,
or test immigrants for the disease before determining
whether they should be admitted. It costs $100 to test a
person for the disease; the test result is either positive or
negative. If the test result is positive, the person definitely
has the disease. However, 20% of all people who do have
the disease test negative. A person who does not have the
disease always tests negative. The government’s goal is to
maximize (per potential immigrant) expected benefits minus
expected costs. Use a decision tree to aid in this undertaking.
Also determine EVSI and EVPI.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 7 images
