You Have Inherited a Lottery Ticket That May Be a $5,000

question 79

Essay

You have inherited a lottery ticket that may be a $5,000 winner. You have a 35% chance of winning the $5,000 and a 65% chance of winning $0. You have an opportunity to sell the lottery ticket for $1,500. What is your expected return and what should you do if are risk neutral?

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Definitions:

Ortholog

Genes in different species that evolved from a common ancestral gene by speciation and retain the same function.

Speciation Event

The process by which new genetically distinct species evolve from a single ancestral species.

Gene Duplication

A process in which a chromosome segment is copied resulting in multiple copies of the same gene in the genome, often leading to new genetic functions.

Paralogs

Genes that have evolved within the same species due to gene duplication and then diverged in function.