Multiple Choice
A person is trying to decide if they should buy a lottery ticket. The ticket costs $2.00. If the ticket is a winner, the prize would be $1,000. Knowing that winning $1,000 is not a certain outcome (state of nature) , the person finds that the probability of winning is 0.001. Based on this information, the following payoff table can be constructed: 
Based on the expected monetary value of buying a ticket, what is the best decision?
A) Buy
B) Don't buy
C) Lose
D) Win
Correct Answer:
Verified
Correct Answer:
Verified
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