4. Suppose the government is deciding whether to create a vaccination program to prevent a potential epidemic of Zika virus. If there is an epidemic, it will cost the country $1, 000 million (for medical care, lost work-hours, etc.). The vaccination program would cost $40 million. If they don't create the vaccination program, there is a 9/10 chance of an epidemic. If they do create the vaccination program, there is still a 1/10 chance of an epidemic.

(a) Draw a 2 x 2 table and label the rows with the available actions (program, no program). Label the columns with the possible outcomes (epidemic, no epidemic). In each cell write the monetary cost and the corresponding probability.

(b) What is the expected monetary value of creating the vaccine program?

(c) What is the expected monetary value of not creating the program?

(d) If the government makes their decision based on expected monetary values, will they follow the program or not?