Use the Monte Carlo technique for a flood control simulation. Use the random number of a uniform distribution. The value of U (random number from uniform distribution) is transformed into a value of x as follows:

The value of cost for flood control is obtained by a similar procedure and a($) = 8,000, b($) = 15,000, and c($) = 40,000. Similarly, a value of benefit and a value of cost are obtained for each of the proposed projects. Determine the expected value of B/C for the project.

Transcribed Image Text:

x=a+(b-a)(c-a)U for 0US. x=c-(c-b)(c-a)(1-U) for b-a c-a b-a c-a SUSI