Please answer the attached questions, see below (statistics and probability)

1. A legislative committee is considering an appropriations bill to fund a particular preventative health care program. Experts estimate that spending money in this preventative care will save more money on other programs. They estimate that the amount spent on the preventative program will inuence not only the estimated savings in other programs but also the probabilities of realizing high or low savings. The savings estimates for high, moderate and low spending options are shown in the table below, together with the m expert predict for those savings (all dollar gures in millions of dollars). High Savings Estimates LOW Savings Estimates savings gmbabil'g saviggs probability Sanding Oion High Spending $1,000 0.7 $350 0.3 Moderate Spending $750 0.5 $250 0.5 Low Spending $500 0.2 $150 0.8 The spending amounts the legislators are considering are: High Spending = $700 million, Moderate Spending = $400 million, and Low Spending = $100 million. a. Construct a decision tree to aid the legislators in selecting the spending option with the highest expected net savings (net savings = savings minus spending). b. What are the expected net savings of each of the spending options? What option maximizes expected net savings? c. What option minimizes maximum loss (minimax)? What option maximizes maximum net savings (Wags)