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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

The government is attempting to determine whether immigrants should be tested for a contagious disease. Lets 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 government $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. The government 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 governments 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. show all works.

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