2. You own a bicycle and kayak rental store just off a beach on the Florida Gulf Coast. You have never had ooding issues, so you have never worried about buying ood insurance. However, you have recently been approached by an insurance agent who has convinced you that your ood risk has been increased due to global warming. Indeed, the agent convinces you that there is 0.35 probability that you will be ooded in any given year. You currently net $200 thousand annually in prot. That prot will be half as much ($100 thousand) if you are ooded. The insurance agent offers you 80% coverage for your losses in the event of a ood at a cost of $35 thousand a year. You use this information to construct the decision tree below. Based on the expected value criterion, should you buy this insurance? Show your work. (15 Points) Flood (0.35] $145K No Flood [0.55 3165!! Flood (0.35} $100K No Flood {0.65 $200K