A campus organization is holding a lottery to raise money.The cost of a ticket is $2 but the buyer can choose to either receive the prize money all at once or half at the time of the drawing and the remainder in 3 months.To ensure that all buyers do not make the same choice,the structure of the prizes must be such that
A) the amount of the all-at-once prize is smaller.
B) the two prizes should be the same amount.
C) the total amount of the half and half prize is smaller.
D) the amount of the all at once prize is larger.
E) the amount of the all at once prize is equal to one half of the total amount of the half and half prizE.

Question

Quizplus · Accepted Answer

To incentivize different choices, the all-at-once prize should be smaller than the total of the half-and-half prize, encouraging some buyers to choose the immediate smaller amount and others to wait for the larger total.

A Campus Organization Is Holding a Lottery to Raise Money