Can someone help me solve this question and show all steps.

4. [4] As part of your benefits, your employer offers a medical flexible spending account (FSA). At the beginning of each year you decide how much to put into that account from your pretax salary. According to IRS rules, you can use pre-tax money from that account to pay for qualifying medical expenses throughout the year. However, you lose any unspent money remaining in your FSA at the end of the year. Assume a 40% tax rate. Using data from the past ten years you come up with the following discrete distribution for medical expenses you will incur next year: Expenses Probability $ 450 0.1 $ 770 0.1 $ 850 0.1 $ 920 0.1 $ 1,100 0.1 $ 1,200 0.1 $ 1,500 0.1 $ 1,700 0.1 $ 2,400 0.1 $ 3,800 0.1 (a) In deciding how much to put into this FSA, what is: i. [1] the cost of shortage (in pre-tax dollars)? ii. [1] the cost of excess (in pre-tax dollars)? (b) (1) How much should you put into your FSA at the beginning of the year (in pre-tax dollars) to minimize your expected medical expenditures? (You can assume no limit on FSA funds.) (c) (1) How much should you put into your FSA at the beginning of the year (in pre-tax dollars) to limit to 20% the probability of having to pay for any medical expenses with after-tax funds