Jacob Is Thinking of Buying a $1 Lottery Ticket

Multiple Choice

Jacob is thinking of buying a $1 lottery ticket. In Lottery A, his odds of winning are 1 out of a 1000, and he may win $500. In Lottery B, his odds of winning are 1 out of 5000, but he may win $5000. Based on expected value theory, Jacob should

A) buy either ticket because both lotteries have the same expected value.
B) buy a ticket from Lottery B because it has a higher expected value.
C) buy a ticket from Lottery A because it has a higher expected value.
D) not buy either ticket because both lotteries have very low odds of winning.