Suppose the government is deciding whether to create a vaccination program to prevent a potential epidemic of Zika virus. If the
re is an epidemic, it will cost the country $1, 000 million (for medical care, lost work-hours, etc.). The vaccination program would cost $40 million.
If they don't create the vaccination program, there is a 9/10 chance of an epidemic. If they do create the vaccination program, there is still a 1/10 chance of an epidemic.
Draw a 2x 2 table and label the rows with the available actions (program, no program). Label the columns with the possible consequences (epidemic, no epidemic). In each cell, put the monetary cost in the top-left corner, and put the probability in the bottom-right corner.
If they don't create the vaccination program, there is a 9/10 chance of an epidemic. If they do create the vaccination program, there is still a 1/10 chance of an epidemic.
Draw a 2x 2 table and label the rows with the available actions (program, no program). Label the columns with the possible consequences (epidemic, no epidemic). In each cell, put the monetary cost in the top-left corner, and put the probability in the bottom-right corner.
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