please answer where it says [5 points]

this is one question.

2. [20 total points for this problem] The official definition of business size in problem 1 (b) (i) is as follows: micro (fewer than 10 full-time employees (FTEs)); small (10-49 FTEs); medium (50-249 FTEs); and large ( 250 or more FTEs). You're given a choice (i.e., you must choose an action, ideally using principles and methods of decision theory) by a market research firm to which you'll pay a consulting fee for the data on business size at a particular fixed point in time: for each of the firms in their data set they'll either (I) give you business size as in problem 1 (b) (i), at a cost to you of $(X>0), or they'll (II) give you the actual number of FTEs for each firm (e.g., 761 instead of large), for which you pay $(Y>0). Let's agree to call an analysis benefit-only if it draws conclusions about the optimal (i.e., best possible) action based only on the benefits of each action, and instead let's say that we're making a cost-benefit analysis if we arrive at the optimal action using a process that weighs costs against benefits. Here, for simplicity, let's pretend that your only possible actions correspond to (I) and (II) above (in reality you'd have other possible actions, e.g., looking for a better market research firm from which to buy the data). (a) If YX, what's the optimal action from a benefit-only point of view? Explain briefly. [5 points] Repeat (still assuming that YX ) from a cost-benefit point of view; explain briefly. [5 points] Hint for both parts of this item: think about the 2. [20 total points for this problem] The official definition of business size in problem 1(b) (i) is as follows: micro (fewer than 10 full-time employees (FTEs)); small (10-49 FTEs); medium (50-249 FTEs); and large ( 250 or more FTEs). You're given a choice (i.e., you must choose an action, ideally using principles and methods of decision theory) by a market research firm to which you'll pay a consulting fee for the data on business size at a particular fixed point in time: for each of the firms in their data set they'll either (I) give you business size as in problem 1(b)(i), at a cost to you of $(X>0), or they'll (II) give you the actual number of FTEs for each firm (e.g., 761 instead of large), for which you pay $(Y>0). Let's agree to call an analysis benefit-only if it draws conclusions about the optimal (i.e., best possible) action based only on the benefits of ench action, and instead let's say that we're making a cost-benefit analysis if we arrive at the optimal action using a process that weighs costs against benefits. Here, for simplicity, let's pretend that your only possible actions correspond to (I) and (II) above (in reality you'd have other possible actions, e.g., looking for a better market research firm from which to buy the data). (a) If YX, what's the optimal action from a benefit-only point of view? Explain briefly. [5 points] Repeat (still assuming that YX ) from a cost-benefit point of view; explain briefly. [5 points] Hint for both parts of this item: think about the 2. [20 total points for this problem] The official definition of business size in problem 1 (b) (i) is as follows: micro (fewer than 10 full-time employees (FTEs)); small (10-49 FTEs); medium (50-249 FTEs); and large ( 250 or more FTEs). You're given a choice (i.e., you must choose an action, ideally using principles and methods of decision theory) by a market research firm to which you'll pay a consulting fee for the data on business size at a particular fixed point in time: for each of the firms in their data set they'll either (I) give you business size as in problem 1 (b) (i), at a cost to you of $(X>0), or they'll (II) give you the actual number of FTEs for each firm (e.g., 761 instead of large), for which you pay $(Y>0). Let's agree to call an analysis benefit-only if it draws conclusions about the optimal (i.e., best possible) action based only on the benefits of each action, and instead let's say that we're making a cost-benefit analysis if we arrive at the optimal action using a process that weighs costs against benefits. Here, for simplicity, let's pretend that your only possible actions correspond to (I) and (II) above (in reality you'd have other possible actions, e.g., looking for a better market research firm from which to buy the data). (a) If YX, what's the optimal action from a benefit-only point of view? Explain briefly. [5 points] Repeat (still assuming that YX ) from a cost-benefit point of view; explain briefly. [5 points] Hint for both parts of this item: think about the 2. [20 total points for this problem] The official definition of business size in problem 1(b) (i) is as follows: micro (fewer than 10 full-time employees (FTEs)); small (10-49 FTEs); medium (50-249 FTEs); and large ( 250 or more FTEs). You're given a choice (i.e., you must choose an action, ideally using principles and methods of decision theory) by a market research firm to which you'll pay a consulting fee for the data on business size at a particular fixed point in time: for each of the firms in their data set they'll either (I) give you business size as in problem 1(b)(i), at a cost to you of $(X>0), or they'll (II) give you the actual number of FTEs for each firm (e.g., 761 instead of large), for which you pay $(Y>0). Let's agree to call an analysis benefit-only if it draws conclusions about the optimal (i.e., best possible) action based only on the benefits of ench action, and instead let's say that we're making a cost-benefit analysis if we arrive at the optimal action using a process that weighs costs against benefits. Here, for simplicity, let's pretend that your only possible actions correspond to (I) and (II) above (in reality you'd have other possible actions, e.g., looking for a better market research firm from which to buy the data). (a) If YX, what's the optimal action from a benefit-only point of view? Explain briefly. [5 points] Repeat (still assuming that YX ) from a cost-benefit point of view; explain briefly. [5 points] Hint for both parts of this item: think about the