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1. Ithaca is a small town that often faces uncharacteristically high traffic flow problems for a city of its size. Some of these traffic problems

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1. Ithaca is a small town that often faces uncharacteristically high traffic flow problems for a city of its size. Some of these traffic problems cause congestion and accidents. Suppose the mayor of Ithaca proposes stopping all highway traffic from 79, 89, and 13 from feeding directly into downtown Ithaca, proposing to instead divert the traffic onto side roads. Suppose this policy could result in three possible outcomes: a). a present value of net benefits (denoted PV[NB]) of $4m with probability 0.35 b). PV[NB] of $1m with probability 0.60 c). or a PV[NB] of -$10m (a loss) with probability 0.05 Should this policy be pursued

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