Terri Decides to Play the Lottery

question 79

Multiple Choice

Terri decides to play the lottery.She has a 1% probability of winning $1000 and a 99% probability of winning $0.The expected value of her decision to play is

• A) $1,000.
• B) $100.
• C) $10.
• D) $1.
• E) $0.

---

Definitions:

Mistrust

The lack of trust or confidence in someone or something, often resulting from negative past experiences or perceptions of unreliability.

Disbelief

A lack of faith or trust in the truth or existence of something.

Smoothing

A technique used in various contexts, such as negotiation or production, to reduce volatility, conflicts, or fluctuations, aiming for a more stable or harmonious state.

Superordinate Goals

Objectives that are important to more than one party and can only be achieved through the cooperation of all parties involved.