A Person Is Trying to Decide If They Should Buy

question 78

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:

Time Orientation

An individual’s or culture's temporal perspective or attitude towards time, which can significantly influence behavior, priorities, and decision-making.

Legal Challenges

Disputes or obstacles that arise in the enforcement or interpretation of laws.

Political Challenges

Issues, obstacles, or conflicts that arise in the context of governance, policy-making, or public administration that require strategic resolution.

Ethical Challenges

Situations or dilemmas that require individuals or organizations to choose actions that are morally right but may conflict with personal or societal norms.