Please answer the question in the picture, thanks!

Suppose you are offered a gamble through which you can gain $1,000,000 with probability 0.001 but lose $10 with probability 0.999. Let random variable X represent that gamble, i.e., X takes value 1,000,000 with probability 0.001 and value -10 with probability 0.999. Note that E(X) - 990.01 However, not everyone would agree to participate in that gamble. This could be because the utility of an extra dollar decreases with the amount of money one already has (one more dollar means more for a poor person than for a millionaire). In particular, suppose that the "true values" a person ascribes to earning some amount of money y (or loosing y if y