Step 4: Find the typical household's optimal consumption basket when its income s $62.208. What s the household's associated level of utility? (7 marks) Step 5: lind the typical household's optimal consumption basket when its income s $12.288. What s the household's associated level ol utility? (7 marks) Step 6: What s the typical bouscho d's expected utility if it coos not purchase insurance? (2 marks ) Stop 7: What is the expected payout to the typical household if it does purchase insurance? (? marks) Step 8: Calculate the typical household's risk premium for the income insurance. (9 marks) (H not: Fxpress both goods as a function of income. /, in the utility function. ) Step 9: What is a househo d's maximum willingness to pay for insurance? (2 marks) Step 10: Compete any additional calculations that you require to support your recom mendation. (4 marky)