MAT 543 WEEK 7 DISCUSSION

MAT 543 WEEK 7 DISCUSSION

"Decision Analysis" Please respond to the following:

• 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.

BONUS: FOUR DIFFERENT ANSWER POSTED CHOOSE ONE