A person is trying to decide if he or she should buy a lotteryticket. The ticket costs $2.00. If the ticket is a winner, theprize would be $1,000. Knowing that winning $1,000 is not a certainoutcome (state of nature), the person finds that the probability ofwinning is 0.001. Based on this information, the following payofftable can be constructed:
What is the expected monetary value of buying the ticket?
Group of answer choices
A) +$1.000
B) −$0.998
C) +$0.998
D) −$1.998
A person is trying to decide if he or she should buy a lottery ticket. The ticket costs $2.00. If the ticket is a winner
-
answerhappygod
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am