Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The government of Wano country is deciding between allowing or denying entry to tourists to the country due to an ongoing pandemic in the rest
The government of Wano country is deciding between allowing or denying entry to tourists to the country due to an ongoing pandemic in the rest of the world. Wand country relies heavily on tourism for employment and denying tourists from entering will have a terrible impact on its economy. Currently none of its citizens have been infected by the disease causing the pandemic. Tourism to the country has already been affected clue to the pandemic. if Wano country allows a person to enter, the government estimates the revenue gained per person they let enter the country to be $800. However, there is a 2% chance that a person is a carrier of the disease. In that case, the government estimates the total cost to deal with an infected person and related repercussions to be $5656 {note that this already factors in the revenue gained by allowing the person to enter}. if Wano country denies a person from entering, the government estimates the cost to the economy to be $2000 per person that is refused entry. The government of Wano country is deciding between two types of tests to help in screening tourists. The rst test is the PCR test, with both sensitivity and specicity being 0.99. The second test is an ART test. If a person is not infected, the ART test would be negative with probability 0.972 If a person is infected, the ART test would be positive with probability 0.8. Draw the decision tree for this decision problem faced by the government of Wano country, considering all decisions. You may assume the decision is made on a per person basis. Please answer the following questions. For your decision tree, what is the maximum expected revenue gained per tourist? Please round to 1 decimal place
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started