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Could you give detailed solution Question 2. Mark has $1000 in his hands, and he wants to put it into an online bank. He has
Could you give detailed solution Question 2. Mark has $1000 in his hands, and he wants to put it into an online bank. He has two options: Bank A and Bank B. Both banks offer two security options: Exclusive and Premium. The costs for security options are $100 for Exclusive and $80 for Premium for both banks. According to statistics: - Bank A's Exclusive Security Plan reduces the successful hacking attempt by 90%. - Bank B's Exclusive Security Plan reduces the successful hacking attempt by 85%. - Bank A's Premium Security Plan reduces the successful hacking attempt by 70%. 1 - Bank B's Premium Security Plan reduces the successful hacking attempt by 75%. The chance of having any hacking attempt in Bank A is 40\%, and in Bank B, it is 35%. The attempt being successful has a probability of 90% if no security option is used for both banks. With any successful hacking, Mark will lose 70% of his money. His utility for the amount of money in his account x is given by U(x)=x. (a) Draw a decision tree for Mark. (b) Find out the best decisions which maximize Mark's expected utility
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