Problem
In a certain state lottery, a lottery ticket costs $4. In terms of the decision to purchase or not to purchase a lottery ticket, suppose that the following payoff table applies: State of Nature Win Lose Decision Alternatives s1 s2 Purchase Lottery Ticket, d1 550000 -4 Do Not Purchase Lottery Ticket, d2 0 0 A realistic estimate of the chances of winning is 1 in 250,000. 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 If a particular decision maker assigns an indifference probability of 0.00001 to the $0 payoff. Would this individual purchase a lottery ticket?