Multiple Choice
Jacob is thinking of buying a $1 lottery ticket.In Lottery A,his odds of winning are 1 out of 1,000,and he may win $500.In Lottery B,his odds of winning are 1 out of 5,000,but he may win $5,000.What will Jacob choose to do based on expected value theory
A) Buy a ticket from Lottery A because it has a higher expected value.
B) Not buy either ticket because both lotteries have very low odds of winning.
C) Buy a ticket from Lottery B because it has a higher expected value.
D) Buy either ticket because both lotteries have the same expected value.
Correct Answer:

Verified
Correct Answer:
Verified
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