The Variance of a Lottery Is

question 36

Multiple Choice

The variance of a lottery is:

• A)the average payoff you would get from the lottery if the lottery were repeated many times.
• B)the sum of the probability-weighted squared deviations of the possible outcomes of the lottery.
• C)a measure of risk preference.
• D)the amount an agent would be willing to pay to enter a lottery.

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Definitions:

Franchise

A business model where a company allows an individual or other company to operate a branch of their business under their brand and guidelines.

Customer-Operated

Pertaining to systems or services that are directly used or managed by the customers themselves.

Self-Service

A business model or service design that allows customers to access services and perform tasks without direct assistance from staff, often through digital platforms or kiosks.

Internet Shopping

The act of purchasing goods or services over the internet, using various devices like computers, tablets, or smartphones.