An office building to be constructed in Houston will be subjected to wind loads. The probability that the wind speed will exceed 100 miles per hour (mph) is 0.01% in any year. If the building subjected to wind speeds exceeding 100 mph, the damage will be $65,000. No damage occurs when the wind speed is less than 100 mph. To protect the building against winds of 100 mph or more, the engineers have determined that an additional capital investment of $35,000 is required. When the building is subjected to wind speeds in excess of 100 mph, the building damage is estimated to be $6,000. Use Decision Tree Analysis determine the best of the following alternatives: A. B. No additional investment for wind load damage $35,000 investment for wind load damage Assume a design life of 20 years and a yearly interest rate of 10 percent (See Engineering Economics Reference). You must draw the Decision Tree (with all pertinent information). Present detailed calculations to support your results.

Elements Of Electromagnetics
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ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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An office building to be constructed in Houston will be subjected to wind loads. The probability that the wind speed
will exceed 100 miles per hour (mph) is 0.01% in any year. If the building subjected to wind speeds exceeding 100
mph, the damage will be $65,000. No damage occurs when the wind speed is less than 100 mph. To protect
the building against winds of 100 mph or more, the engineers have determined that an additional capital investment
of $35,000 is required. When the building is subjected to wind speeds in excess of 100 mph, the building damage is
estimated to be $6,000. Use Decision Tree Analysis determine the best of the following alternatives:
A.
No additional investment for wind load damage
B. $35,000 investment for wind load damage
Assume a design life of 20 years and a yearly interest rate of 10 percent (See Engineering Economics Reference).
You must draw the Decision Tree (with all pertinent information).
Present detailed calculations to support your results.
Transcribed Image Text:An office building to be constructed in Houston will be subjected to wind loads. The probability that the wind speed will exceed 100 miles per hour (mph) is 0.01% in any year. If the building subjected to wind speeds exceeding 100 mph, the damage will be $65,000. No damage occurs when the wind speed is less than 100 mph. To protect the building against winds of 100 mph or more, the engineers have determined that an additional capital investment of $35,000 is required. When the building is subjected to wind speeds in excess of 100 mph, the building damage is estimated to be $6,000. Use Decision Tree Analysis determine the best of the following alternatives: A. No additional investment for wind load damage B. $35,000 investment for wind load damage Assume a design life of 20 years and a yearly interest rate of 10 percent (See Engineering Economics Reference). You must draw the Decision Tree (with all pertinent information). Present detailed calculations to support your results.
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