Week 2 Discussion: Animal Health Agency

Week 2 Discussion: Animal Health Agency
Week 2 Discussion: Animal Health Agency
You, an analyst at the Animal Health Agency (AHA), must make a recommendation whether or not to ban imported pigs…
• You, an analyst at the Animal Health Agency (AHA), must make a
recommendation whether or not to ban imported pigs due to a risk of
importing a disease, porcine hoof blister (PHB), or to require that imported
pigs be tested for the disease.
▫ With no ban, the probability of an outbreak is known with 90% confidence to be
in the range [0.2%, 5%] and the cost of dealing with an outbreak is known to be
$1,000,000 (which will ultimately be paid by the consumer).
▫ With a ban, there will be 0% probability of transmission, but the industry will
experience increased costs that are estimated with 90% confidence to be in the
range of [$1,000, $50,000]. (These costs will also be ultimately paid by the
consumer.)
▫ You could also require a test that reduces the probability of an outbreak to
[0.02%, 0.5%] (90% confidence), but increases costs by $10,000 (plus
$1,000,000 in the event of an outbreak).
• Your agency’s goal is to reduce the overall cost to the consumer
▫ Report
well, i need all calculations with explanations on your approach
i don’t need a written report
but
i need a clear understanding of what you done
where all numbers come from
and so on
please make a decision tree
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The paper must be neatly formatted, double-spaced with a one-inch margin on the top, bottom, and sides of each page. When submitting hard copy, be sure to use white paper and print out using dark ink. If it is hard to read your essay, it will also be hard to follow your argument.

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