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The municipality of Abu Dhabi has two technologies in order to deal with the solid waste produced in the city. One option is to landfill

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The municipality of Abu Dhabi has two technologies in order to deal with the solid waste produced in the city. One option is to landfill and the other is to incinerate. Landfilling can be done by having a clay liner, or a single liner, or a double liner. The clay liner historically has failed 20% of the cases. It would cost 1 million AED and in case it fails, because pollution will be widespread, the cost to clean up is estimated to be about 6 million. The single liner costs 1.5 million and if it fails with a probability of 15% it is expected it will cost an additional 4 million to cleanup. Finally, the double liner is more expensive at a cost of 2.5 million and if it fails, with a probability of 5%, it will cost to clean up only 1 million because the pollution is not expected to be as extensive as in the other cases. Incineration can be done by using basic filters to control air pollution or advanced filters. The cost of basic filters is 3.5 million and if they fail with a probability of 3% another 0.5 million is estimated to cost to fix the system. The cost of advanced filters is 4.5 million and if they fail with a probability of 1% the cost to fix them is estimated to be 1 million. Make the analysis in order help the municipality decide which technology to proceed. (a) Make the decision tree and show all your costs and probabilities. Use symbols to indicate decision nodes and chance nodes. (b) Using the expected monetary value (EMV) criterion which is the best option? (c) Using the MiniMax criterion which is the best option? (d) Explain if and why you get different answers from b and c

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