(Please solve all steps in text format with no images attached, thank you)

In a certain state lottery, a lottery ticket costs $2. In terms of the decision to purchase or not to purchase a lottery ticket, suppose that the following payoff table applies:

	State Of Nature
Decision Alternatives	Win s1	Loses s2
Purchase lottery ticket d1	300,000	-2
Do not purchase lottery ticket d2	0	0

a. A realistic estimate of the chances of winning is 1 in 250,000. Use the expected value approach to recommend a decision.

b. If a particular decision maker assigns an indifference probability of 0.000001 to the $0 payoff, would this individual purchase a lottery ticket? Use expected utility to justify your answer.