SECTION TWO: Essay Questions (28 PTs) Please show calculation and reasoning to get credits. 6. (7 pts) A family in Downtown Dallas area is thinking whether they should buy insurance against theft for one year. Of course, they can decide not to buy and enter the contract. The properties of the house are estimated to be around $20,000 to replace in total. Based on police's report, around 3% chance that his house will be broken into in the coming year In case the house is broken, the family's losses would be either 10% or 30% of the total worth of the property, with probabilities 60% and 40% respectively. Company AAA's policy costs $150 a year but guarantees to replace any losses due to theft Company BBB's policy is cheaper at $100 a year, but the family has to pay the first $50 of any loss themselves Assume that there will be at most one theft a year. Draw the decision tree and decide what to do. Show your calculations