The Odds Against Winning $1

question 73

Multiple Choice

The odds against winning $1.00 in the lottery are 19 to 1. What is the probability of winning $1.00 in the lottery?

• A) 0.05
• B) 0.0526
• C) 0.90
• D) 0.95

Understand the concept of myopic loss aversion and its implications in decision-making.

Comprehend the nature and effects of recency bias on judgements and decisions.

Grasp the principles of the representativeness heuristic and its impact on probabilistic reasoning.

Define the endowment effect and its influence on value perception and decision-making.

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Definitions:

Earth's Life Support

The natural systems and processes that sustain life on Earth, including the atmosphere, hydrosphere, lithosphere, and biosphere.

Free-access Resource

Natural resources that are available to everyone, often leading to overuse and depletion because no one has the exclusive right to use them.

Global Common Resources

Natural resources not owned by any one nation and accessible to all, such as the oceans, the atmosphere, and space.

Exponential Growth

A pattern of population increase where the rate of growth is proportional to the current size, leading to rapid expansion over time.