Essay
A person is trying to decide if they should buy a lottery ticket. The ticket costs $1.00. If the ticket is a winner, the prize would be $10,000. Knowing that winning $10,000 is not a certain outcome (state of nature), the person finds that the probability of winning is 0.0009. 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?
Correct Answer:
Verified
Correct Answer:
Verified
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