You have a lottery ticket that has a 45% chance of winning $10.00 and a 55% chance of not winning anything. Your friend has a different lottery ticket with a 20% chance of winning $25.00 and an 80% chance of not winning anything. Your friend has offered to let you have her ticket if you will give her your ticket plus $1.00. 

Draw a decision tree for this decision. 

What is the Expected Monetary Value (EMV) of these options, and what should you do?

Answer rating: 100% (QA)

Here is a decision tree for this scenario You keep your ticket 045 ... View the full answer