Question: 2. Sidewalk Sam, from the previous problem, has the utility function for consumption in the two states of nature cs,c,.,1r) = (Islc;r where as is

2. Sidewalk Sam, from the previous problem, has the utility function for consumption in the two states of nature cs,c,.,1r) = (Isl\"c;r where as is the dollar value of his consumption if it shines, cr is the dollar value of his consumption if it rains, and 11 is the probability that it will rain. The probability that it will rain is 17 = .5. (a) How many units of consumption is it optimal for Sam to consume conditional on rain? (b) How many rain coupons is it optimal for Sam to buy

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