Mega City Hospital is selling lottery tickets. All proceeds go to its cancer research program. Each...
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Mega City Hospital is selling lottery tickets. All proceeds go to its cancer research program. Each ticket costs $100, but the campaign catchphrase prom- ises a 1-in-1000 chance of winning the first prize. The first prize is a "dream" house, which is worth $250 000. On the basis of decision tree analysis, is buy- ing a ticket worthwhile? Determine the price of a ticket so that not buying a ticket is the preferred option and calculate the chance of winning so that not buying a ticket is the preferred option. Mega City Hospital is selling lottery tickets. All proceeds go to its cancer research program. Each ticket costs $100, but the campaign catchphrase prom- ises a 1-in-1000 chance of winning the first prize. The first prize is a "dream" house, which is worth $250 000. On the basis of decision tree analysis, is buy- ing a ticket worthwhile? Determine the price of a ticket so that not buying a ticket is the preferred option and calculate the chance of winning so that not buying a ticket is the preferred option.
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In this case the cost of a ticket is 100 and the probability of winning the first prize is 1 in 1000 ... View the full answer
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date:
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