1. You are the Risk manager for Home Depot and your management has asked you to analyze the risk for the incorporation of a new security management suite (SMS). The SMS displays a single measure of the state of the system which has a random component due to the complexity of the environment. It displays a value r that has the following properties (75 Points): When an attack is present it has a Gaussian pdf with a mean of 11 and a variance of 2 When an attack is absent it has a Gaussian pdf with a mean of 6 and a variance of 3 Your job is to show your management the tradeoff they have by controlling the threshold T that determines whether an alarm is signaled. There are costs associated with each decision If you miss the attack you can expect to lose $1million on average (Type 1) If you have a false alarm it will cost the company $10 thousand in operational costs (Type II) a. Explain to your management the complex nature of the risk tradeoff that they face. b. Compute the Type 1 and Type Il risks as a function of the threshold T c. Determine the value of T for an equal cost decision for Type I and Type II 1. You are the Risk manager for Home Depot and your management has asked you to analyze the risk for the incorporation of a new security management suite (SMS). The SMS displays a single measure of the state of the system which has a random component due to the complexity of the environment. It displays a value r that has the following properties (75 Points): When an attack is present it has a Gaussian pdf with a mean of 11 and a variance of 2 When an attack is absent it has a Gaussian pdf with a mean of 6 and a variance of 3 Your job is to show your management the tradeoff they have by controlling the threshold T that determines whether an alarm is signaled. There are costs associated with each decision If you miss the attack you can expect to lose $1million on average (Type 1) If you have a false alarm it will cost the company $10 thousand in operational costs (Type II) a. Explain to your management the complex nature of the risk tradeoff that they face. b. Compute the Type 1 and Type Il risks as a function of the threshold T c. Determine the value of T for an equal cost decision for Type I and Type