Please answer all parts of the question. Thanks!

Part III: Risk and Insurance Note: Where necessary, round to two decimal places for display of nal answers ONLY (this means that you should NOT round in the middle of your process of calculating!). Kelly is a farmer with zero wealth. She can either plant rice or cotton. If she plants cotton, Kelly earns an income of 31800 if the weather is GOOD, and $0 ifthe weather is BAD. If she plants rice, Kelly will earn an income of $1000 under both GOOD and BAD weather. The probability of GOOD weather is 0.7. The probability of BAD weather is 0.3. Kelly's utility function is 11(6) = INC, where C is the value of consamption. Use this information to fill out the following table for Kelly. Table 1 a. What type of risk preferences does Kelly have? Justify your answer. b. Which crop will Kelly choose to plantPJustify your