On a Whim You Purchased a Scratch-Off Lottery Ticket at the Gas

question 134

Multiple Choice

On a whim you purchased a scratch-off lottery ticket at the gas station.It must have been your lucky day because you won $1,000,000.Being logical and rational you decide to invest the money at 3% for 10 years until you are ready to start a family.At the end of 10 years,how much will your investment be worth?

• A)$11,464,000
• B)$1,344,000
• C)$744,000
• D)$1,384,000

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Definitions:

Maximin Strategy

A strategy in decision-making used under uncertainty, aiming to maximize the minimum gain that can be achieved.

Stackelberg

An economic model of market structure in which one firm sets its output decision first, and other firms follow, establishing a leader-follower dynamic.

Cournot

Refers to an economic model of competition among firms, where each firm decides its production level assuming the other firms' levels are fixed, leading to a state of Cournot equilibrium.

Sequential Games

Games in which players make decisions one after another, with later players having knowledge of the previous actions taken by other players.