Could you please provide step by step solution for this question? If you provide a clear explanation, I would be very grateful. Thanks in advance!

Question 1 A risk averse individual faces uncertainty with two outcomes: good, bad. The individual has income $560 under good and $350 under bad outcome. The probability of good outcome is 4/7 (so the probability of bad outcome is l 4/7 = 3/7). The individual can buy any non-negative x units of insurance. Every unit of insurance has price $12 and it pays $1 in the event of bad outcome. In this insurance market, the unit price of insurance is known to be p = 1/2. (c) [6 points] For the individual: (i) compare full insurance with over insurance and (ii) compare 111 insurance with partial insurance. Then determine best choice of insurance for the individual