Operations Research

Let's assume that the decision will be made strictly on a financial basis.

Assume that each immigrant who is allowed into the country and has the disease (event D) costs the U.S. $200,000, and each immigrant who enters and does not have the disease (event N) will contribute $10,000 to the national economy. Assume that 5% of all potential immigrants have this disease.

The government's goal is to maximize (per potential immigrant) expected benefits minus expected costs. Draw the associated tree diagram and what will be your recommendation to the government?