Decision Analysis”

Respond to the following
Decision Analysis” Please respond to the following:
Compare the primary strengths and weaknesses of cost-benefit analysis (CBA), cost-effectiveness analysis
(CEA), and cost-utility analysis (CUA). Give your opinion on which method you believe to be the most effective
in economic evaluation.
Using the umbrella decision-making example on page 198 of the textbook, suppose the probability of rain is
0.6, the ruined clothes cost is $30, and the lost umbrella costs are $2. Come to a decision based upon these
assumptions, and determine the break-even probability of rain