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Question: please help with decision analysis...

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Please help with decision analysis
In a certain state lottery, a lottery ticket costs $2. In terms of the decision to purchase or not to purchase a lottery ticket, suppose the following payoff table (in S) applies: 29. State of Nature Win Lose Decision Alternative Purchase lottery ticket, d Do not purchase lottery ticket, d 300,000 -2 If a realistic estimate of the chances of winning are 1 in 250,000, use the expected value approach to recommend a decision. If a particular decision maker assigns an indifference probability of 0.000001 to the S0 payoff, would this individual purchase a lottery ticket? Use expected utility to jus- tify your answer a. b.
Assignment: Lottery Problem, question 29, page 512, but answer the questions below instead of the ones in the book: If you use the Expected Value approach, what decision would you make? .Repeat for the optimistic, pessimistic, and Minimax Regret approaches. Show your work and explain your decision for each approach. Complete your model (Excel file) and complete the Model Quiz
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