Solve the following problem. Please only use excel and show work.

A B C D E F G H 1 J K L M 1 Problem #3 2 3 4 5 6 7 8 John Doe wants to rent a car for 1 week and goes to a rental agency. He is faced with 2 decision alternatives: take the insurance, or do not take the insurance. The rental agency offers insurance that costs $ 10 per day. The uncertain events that might occur are : you would not be involved in an accident, that you would be involved in a fender bender, or that you would be involved in a major accident. A minor fender bender will cost $ 1,500, whereas a major accident might cost $ 15,000 in repairs. Without the insurance, you would be personally liable for any damages. What should you do? Develop a payoff table for this situation. What decision should you make using each strategy? a. Aggressive strategy, Conservative strategy, Opportunity-loss strategy-SHOW TABLES b. Expected value strategy (Prob of fender-bender=0.16; Prob of major accident = 0.05) Draw a decision tree with the above probabilities and show calculations and your decision 9 10 11 12 C. 13 14 15 16 17 18 19 20 21