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 maximin approach?
Definitions:
Allowance Method
An accounting technique used to account for bad debts, where estimated uncollectible accounts are matched against revenues in the same accounting period.
Lower of Cost
An accounting principle that values inventory at the lesser of its historical cost or the current market price to prevent overstating the value of assets.
Allowance Method
An accounting method that estimates and records bad debts expense by anticipating which accounts receivable will be uncollectible.
Direct Method
A way of presenting cash flows from operating activities by listing major classes of gross cash receipts and payments.
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