A Person Is Trying to Decide If He or She

question 40

Multiple Choice

A person is trying to decide if he or she 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 expected monetary value of buying the ticket?

• A)+$1.00
• B)−$0.998
• C)+$0.998
• D)−$1.998

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Definitions:

MAO Inhibitors

A class of antidepressant drugs that work by inhibiting the action of the enzyme monoamine oxidase, which breaks down neurotransmitters in the brain.

Serotonin

A neurotransmitter influential in regulating mood, sleep, appetite, and pain, with imbalances often associated with depression and other mood disorders.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting heart rate, blood pressure, and sugar metabolism.

Norepinephrine

A neurotransmitter and hormone involved in regulating stress responses, attention, and arousal states within the body.