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Your beloved pet is sick. Their condition is such that an expensive medication can keep them alive “happy” until they naturally die from old age. This medication costs $100/month. If the life expectancy of this pet takes on an exponential distribution from above with a MTTF of 8 years:
a. Using the exponential distribution, what is the probability of your pet living another 3 years if they are already 10 years old?
b. If the vet charges $100 to put them down, calculate the expected cost of putting them down now vs paying $3,600 over the course of 3 years to keep them alive. Which option is cheaper?
c. What is your argument for paying for the medication no matter what the decision analysis says.
d. What is your argument for why you should put your pet down no matter what decision analysis says.
e. Does it make sense to use emotions sometimes to make decisions and not just numbers?
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