2) (50 points) Referring back to the party problem, let us investigate how the possibility of buying rain insurance would influence Ryan's decision. The insurance being offered will pay Ryan $51 if it rains and otherwise nothing. The effect of owning this insurance would generally be to make him happier on a rainy day. However, the insurance has a cost of $31. So that the net payoff to Ryan will be a $31 loss if it is sunny and a $20 gain if it is rainy. Is this insurance a good deal for Ryan? Draw the decision tree and show all the complete calculation which results into your answer You can find the information about the party problem and Ryan's exact utility function in the lecture materials. 2) (50 points) Referring back to the party problem, let us investigate how the possibility of buying rain insurance would influence Ryan's decision. The insurance being offered will pay Ryan $51 if it rains and otherwise nothing. The effect of owning this insurance would generally be to make him happier on a rainy day. However, the insurance has a cost of $31. So that the net payoff to Ryan will be a $31 loss if it is sunny and a $20 gain if it is rainy. Is this insurance a good deal for Ryan? Draw the decision tree and show all the complete calculation which results into your answer You can find the information about the party problem and Ryan's exact utility function in the lecture materials