A Person Is Trying to Decide If They Should Buy

question 36

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 probability of losing $2.00?

• A) 0.001
• B) 0.999
• C) 1.00
• D) Cannot be computed

---

Definitions:

Letter From Birmingham Jail

An open letter written by Martin Luther King Jr. in 1963, advocating for civil rights and expressing the importance of nonviolent protest.

Jim Crow

Refers to a set of laws and practices in the southern United States that enforced racial segregation and discrimination against African Americans after the Civil War.

Segregationists

Individuals or groups who support the practice of separating people based on racial, ethnic, or other differences, often upheld through laws or social norms.

Local Clergyman

A religious leader serving a specific community or parish, often involved in spiritual guidance, community support, and religious ceremonies.