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

question 37

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 should you do if are risk neutral?

---

Definitions:

Unconscious Mind

A part of the mind that is not accessible to the conscious mind but influences thoughts, behaviors, and feelings.

Basic Innate Unit

A fundamental component or aspect of something that is inherent and not acquired from the environment.

Erg

A unit of energy in the centimeter-gram-second (CGS) system, equivalent to the work done by a force of one dyne exerted for a distance of one centimeter.

Basic Drive

Fundamental motivational forces that drive behavior, such as hunger, thirst, sex, and avoidance of pain.