2. From Chapter 9: "Let's examine a simplified version of the 2005 proposal to reform Social Security. Assume the current system would pay a retirement benefit of $25,600 guaranteed. The 2005 reform offers a private social security account which would provide one of the following benefits: $14,400 with 25% probability, $27,225 with 50% probability, or $36,100 with 25% probability" (a) Draw the decision tree for this problem (b) Calculate the expected value of the private account. For a person with no risk aversion, which retirement program should be chose? (c) Assume the individual is risk-averse with a utility function: U = VI and no initial wealth. What is the expected utility of the private account? Would the person prefer this result to the certain $25,600 payoff