Module 5- Assignment 1 The Case for or Against New Orleans

Sometimes one's choices may involve catastrophic decisions and bear great risk and yet there can be no clear answer. For example, if a person gets a divorce, shutters a plant, sells a losing investment, or closes their business, will he or she be better off? The following case incorporates nearly all of the material you have covered this far and presents an example of one such choice where nearly all of the alternatives have a significant downside risk.

Review the following information from the article "A Cost-Benefit Analysis of the New Orleans Flood Protection System" by Stphane Hallegatte (2005):

Hallegatte, an environmentalist, assigns a probability (p) of a Katrina-like hurricane of 1/130 in his cost-benefit analysis for...