Suppose that you are deciding whether to buy a $1 lottery ticket. The jackpot is 1.2...

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Suppose that you are deciding whether to buy a $1 lottery ticket. The jackpot is 1.2 million and there is a 1/1,000,000 chance of winning. a. What is the expected value of buying the ticket and of not buying the ticket? b. What decision should you make according to the expected value decision rule? c. Create a strategy table showing how the optimal decision would change as the jackpot varies from $800,000 to $1,400,000 in $100,000 increments. Suppose that you are deciding whether to buy a $1 lottery ticket. The jackpot is 1.2 million and there is a 1/1,000,000 chance of winning. a. What is the expected value of buying the ticket and of not buying the ticket? b. What decision should you make according to the expected value decision rule? c. Create a strategy table showing how the optimal decision would change as the jackpot varies from $800,000 to $1,400,000 in $100,000 increments.

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a The expected value of buying a ticket here is computed as Cost of t... View the full answer