Internal revenue agency is planning to change the tax policy. Researchers found that the increase in tax revenue (in Million TL) of the new policy can be best represented by a distribution that has the following percentiles. 1% 5% 10% 25% 50% 75% 90% 95% 99% Percentiles Values 1% 5540.93 5% 6856.73 10% 7658.85 25% 9007.57 50% 10379.52 75% 11742.27 90% 12924.18 95% 13745.11 99% 14730.97 The cost of implementing the tax policy is estimated as 5000 (in Millions TL). As an alternative, agency wants to hire extra tax agents to increase the tax revenue. In this case, either the benefit will be zero or it is one of the following: If the number of tax agents is increased 5% there is a 60% chance that tax revenue benefit will be 17500 Million TL. If the number of tax agents is increased 10% there is a 80% chance that tax revenue benefit will be 17500 Million TL If the number of tax agents is increased 15% there is a 90% chance that tax revenue benefit will be 17500 Million TL. For each case. The cost of each 5% increase in the number of tax agents is estimated to be 2100 Million TL. 1. Draw the decision tree for the agency decision problem (Hint: Extendended Pearson-Tukey, EP-T)? 2. What is the agency's decision if the agency is risk-neutral? Internal revenue agency is planning to change the tax policy. Researchers found that the increase in tax revenue (in Million TL) of the new policy can be best represented by a distribution that has the following percentiles. 1% 5% 10% 25% 50% 75% 90% 95% 99% Percentiles Values 1% 5540.93 5% 6856.73 10% 7658.85 25% 9007.57 50% 10379.52 75% 11742.27 90% 12924.18 95% 13745.11 99% 14730.97 The cost of implementing the tax policy is estimated as 5000 (in Millions TL). As an alternative, agency wants to hire extra tax agents to increase the tax revenue. In this case, either the benefit will be zero or it is one of the following: If the number of tax agents is increased 5% there is a 60% chance that tax revenue benefit will be 17500 Million TL. If the number of tax agents is increased 10% there is a 80% chance that tax revenue benefit will be 17500 Million TL If the number of tax agents is increased 15% there is a 90% chance that tax revenue benefit will be 17500 Million TL. For each case. The cost of each 5% increase in the number of tax agents is estimated to be 2100 Million TL. 1. Draw the decision tree for the agency decision problem (Hint: Extendended Pearson-Tukey, EP-T)? 2. What is the agency's decision if the agency is risk-neutral