Problem
1. Describe some of the decisions that you make on the basis of cost-benefit analysis. What are some decisions you should make on the basis of cost-benefit analysis but do not?
2. A tank behind Andre's service station has leaked a large quantity of heating oil into the soil below. If left uncontained, scientists estimate a 5 percent chance that the oil will contaminate local drinking water and cause $1 million worth of illness, and an additional 1 percent chance that the oil will reach both the local aquifer and neighboring waterways, causing a total of $2 million worth of damage. If these are the only risk factors, what is the expected value of damage from Andre's tank?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.