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Compare the primary strengths and weaknesses of cost-benefit analysis (CBA), cost-effectiveness analysis (CEA), and cost-utility analysis (CUA). Give your opinion on which method you believe to be the most effective in economic evaluation.
Using the umbrella decision-making example on page 198 of the textbook, suppose the probability of rain is 0.6, the ruined clothes cost is $30, and the lost umbrella costs are $2. Come to a decision based upon these assumptions, and determine the break-even probability of rain.

Table 10-5 Revenues, Expenses, and Expected Payoffs for Clinic Renovation

Alternative	State of the world (future demand forecasts)	Earnings	Renovation expense	Payoff
No Renovation/Do Nothing	20	$450,000	0	$450,000
No Renovation/Do Nothing	20	$450,000	0	$450,000
No Renovation/Do Nothing	20	$450,000	0	$450,000
Minor Renovation	20	$450,000	$225,000	$225,000
Minor Renovation	35	$787,500	$225,000	$562,500
Minor Renovation	35	$787,500	$225,000	$562,500
Major Renovation	20	$450,000	$700,000	($250,000)
Major Renovation	35	$787,500	$700,000	$87,500
Major Renovation	50	$1,125,000	$700,000	$425,000

10-2
In the clinic renovation example, what if management thinks that the likelihood of current demand remaining is 30%, the likelihood of a moderate increase is 25%, and the likelihood of a large increase is 45%? What should they do, according to the expected total payoff?