Comparing a Lottery Where a $1 Ticket Purchases a Chance

question 62

Multiple Choice

Comparing a lottery where a $1 ticket purchases a chance to win $1 million with another lottery in which a $5,000 ticket purchases a chance to win $5 billion, we notice many people would participate in the first but not the second, even though the odds of winning both lotteries are the same.We can perhaps best explain this outcome by:

• A)Higher expected value for the lottery paying $1 million
• B)Higher expected value for the lottery paying $5 billion
• C)Lower value at risk for the lottery paying $1 million
• D)Higher value at risk for the lottery paying $1 million

---

Definitions:

Order Getting

The process of persuading potential clients to place an order or purchase a service, typically involving direct sales efforts.

Lead Generation

The result of a direct marketing offer designed to generate interest in a product or service and a request for additional information.

Personal Selling

A direct marketing approach where sales professionals interact face-to-face with potential customers to present products or services.

Secretary-Treasurer

An official who performs both the duties of a secretary and a treasurer, typically within an organization.