Suppose the principal cares about output y= e 1 – de 2, but observes signal x=e 1 + ae. What would the principal choose in the compensation scheme w=…

Suppose the principal cares about output y= e1 – de2, but observes signal x=e1 + ae. What β would the principal choose in the compensation scheme w= α + βx if d= 1/2? What β would the principal choose if d= 1 ( you should answer this without doing calculation)? Provide a brief explanation.