tate of Nature
	Win	Lose
Decision Alternatives	s1	s2
Purchase Lottery Ticket, d1	550000	-1
Do Not Purchase Lottery Ticket, d2	0	0

1. A realistic estimate of the chances of winning is 1 in 280,000. Use the expected value approach to recommend a decision. If required, round your answer to two decimal places. If the amount is zero enter "0". Recommended decision: Expected Value = $ fill in the blank 2
2. If a particular decision maker assigns an indifference probability of 0.00001 to the $0 payoff. Would this individual purchase a lottery ticket? Decision: Use expected utility to justify your answer. If required, round your answer to five decimal places. Expected Utility = fill in the blank 4 The input in the box below will not be graded, but may be reviewed and considered by your instructor.

Yes, Purchase Lottery TicketNo, Do Not Purchase Lottery TicketYes, Purchase Lottery Ticket

Purchase Lottery TicketDo Not Purchase Lottery TicketPurchase Lottery Ticket