A Person Is Trying to Decide If He or She

question 21

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 decision that uses a maximax or optimistic approach?

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

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Definitions:

Core Principles

Core principles refer to fundamental beliefs or guidelines that are at the heart of a system, theory, or practice.

Professional Selling

The process of offering products or services to customers in an ethical, trustworthy manner with the goal of making a sale.

Referrals

Recommendations made by satisfied customers or clients to their network, introducing potential customers to a business or service.

Integrity

The quality of being honest without compromise or corruption.