A Person Is Trying to Decide If They Should Buy

question 12

Multiple Choice

A person is trying to decide if they should buy a lottery ticket. The ticket costs $2.00. If the ticket is a winner, the prize would be $1,000. Knowing that winning $1,000 is not a certain outcome (state of nature) , the person finds that the probability of winning is 0.001. Based on this information, the following payoff table can be constructed: What is the decision using a maximax or optimistic approach?

• A) Buy
• B) Don't buy
• C) Lose
• D) Win

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Definitions:

Web Herding

The phenomenon where individuals' decisions or behaviors are influenced en masse through the Internet, often through social media or online reviews.

Functionalist

A viewpoint in both sociology and anthropology that sees society as a system comprised of interconnected components, which function to fulfill the social and biological requirements of its members.

Mass Media

Various forms of communication mediums, such as television, radio, newspapers, and the Internet, that reach a large audience.

Mass Media

Various forms of communication, such as television, radio, newspapers, and the internet, that reach large audiences simultaneously, playing a significant role in shaping public opinion and culture.