Jacob Is Thinking of Buying a $1 Lottery Ticket

question 58

Multiple Choice

Jacob is thinking of buying a $1 lottery ticket. In Lottery A, his odds of winning are 1 out of a 1000, and he may win $500. In Lottery B, his odds of winning are 1 out of 5000, but he may win $5000. Based on expected value theory, Jacob should

• A) buy either ticket because both lotteries have the same expected value.
• B) buy a ticket from Lottery B because it has a higher expected value.
• C) buy a ticket from Lottery A because it has a higher expected value.
• D) not buy either ticket because both lotteries have very low odds of winning.

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Definitions:

Administration Medications

The process of preparing and giving medications to patients according to prescribed procedures and protocols.

New Client

An individual or entity that engages the services of a professional or organization for the first time.

Bronchodilator Inhaler

A device delivering medication that relaxes and opens the air passages in the lungs, used by individuals with asthma or chronic obstructive pulmonary disease.