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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 $ and each immigrant who enters and does not have the disease will contribute $ to the national economy. Assume that 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 $ 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, 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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