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You Have Inherited a Lottery Ticket May Be a $10,000

Question 131

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You have inherited a lottery ticket may be a $10,000 winner.You have a 0.25 chance of winning the $10,000 and a 0.75 chance of winning $0.You have an opportunity to sell the lottery ticket for $2,500.What should you do if you are risk averse?

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A risk-averse consumer may decline a ris...

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