$(20$ points$)$ Lafayette Commercial Complex is in an area that is subject to occasional flooding

by a nearby river. The owner must determine an option that minimizes flooding$-$related costs.

There are two possible options listed below.

Option A: build an anti$-$flooding embankment nearby at the cost of $$8,000$ to withstand a

moderate flood with $$10,000$ damage and to withstand a severe flood with $$20,000$ damage.

Option B: build an anti$-$flooding embankment nearby at the cost of $$20,000$ to withstand a

moderate flood with no damage and to withstand a severe flood with $$10,000$ damage.

Probabilities of no flooding, moderate flooding, and severe flooding are as follows:

$2-($a$)(10$ points$)$ Draw a decision tree and use the decision tree to select the best option.$(20$ points$)$ Lafayette Commercial Complex is in an area that is subject to occasional flooding

by'a nearby river. The owner must determine an option that minimizes flooding$-$related costs.

There are two possible options listed below.

Option A: build an anti$-$flooding embankment nearby at the cost of $$8,000$ to withstand a

moderate flood with $$10,000$ damage and to withstand a severe flood with $$20,000$ damage.

Option B: build an anti$-$flooding embankment nearby at the cost of $$20,000$ to withstand a

moderate flood with no damage and to withstand a severe flood with $$10,000$ damage.

Probabilities of no flooding, moderate flooding, and severe flooding are as follows:

$2-($a$)(10$ points$)$ Draw a decision trec and use the decision tree to select the best option.

$2-($b$)(10$ points$)$ A consulting company can perform research to determine which event out of the

three: no flooding, moderate flooding, or severe flooding, will occur. What is the maximum

amount that the owner should pay for this rescarch?