Scenario:A major city must decide between two competing proj…
Scenario:A major city must decide between two competing projects to address increasing traffic congestion: expanding the existing subway system (high cost, long-term) or implementing a high-speed bus network (lower cost, faster implementation).The mayor’s decision is influenced by values regarding environmental impact, budget constraints, and equitable access. However, future ridership is highly uncertain due to shifting remote work trends. Initial projections estimate the subway will cost $2 billion over 10 years, while the bus network will cost $500 million over 5 years.Question:Apply the principles of Decision Analysis to develop a strategic recommendation for the city. In your response, address the following:Objective Formulation: Distinguish the mayor’s fundamental objectives from potential means objectives in this specific decision context.Determine the Horizon for the decision model.Sensitivity Analysis: Explain how sensitivity analysis should be applied and to which uncertainty(ies) it should be applied.