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The government of country B pegged the value of their currency, called pesos, to the currency of government A, called dollars, at 9 pesos per dollar. Because interest rates in country B were higher than those in the country A, many investors (including banks) bought bonds in country B to earn higher returns than were available in the country A. The benets of the higher interest rates, however, masked the possibility that the peso would be allowed to oat and lose substantial value compared to the dollar. Suppose you are an investor and believe that the probability of the exchange rate for the next year remains at 9 pesos per dollar is 0.8, but that the rate could soar to 18 per dollar with probability 0.2. Complete parts (a) through (0) below. (a) Suppose you are a resident of country A. Consider two investments: Deposit $5,000 today in a savings account in countryA that pays 7% annual interest or deposit $5,000 in an account in country B that pays 13% interest. The latter requires converting the dollars into pesos at the current rate of 9 pesos/dollar and then, after a year, converting the pesos back into dollars at whatever rate then applies. Which choice has the higher expected value in one year? What is the expected value of the investment if you invest in a savings account in country A? $|:| (Type an integer or a decimal.) An office machine costs $10,000 to replace unless a mysterious, hard-to-find problem can be found and fixed. Repair calls from any service technician cost $500 each, and $2,000 is available to get this machine fixed. A repair technician has a 26% chance of fixing it. Complete parts (a) through (c) below. . . . . . (a) Create a probability model for the number of visits needed to fix the machine or exhaust the budget of $2,000. (That is, there can be at most four visits.) p(X = 1) = p(X = 2) = p(X = 3) = p(X = 4) = p(X 25) = (Round to four decimal places as needed.)