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Purchasing a lottery ticket represents two possible outcomes for a buyer, for in...
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Purchasing a lottery ticket represents two possible outcomes for a buyer, for instance they could end up losing the amount they invested in buying the ticket, or they could make a smart profit by winning a portion of the entire lottery. Assigning probability values to the costs involved (in this case, the nominal purchase price of a lottery ticket), it is not difficult to see that the advantages to be gained from purchasing a lottery ticket is greater than not buying it. - - - - - assumes that people are basically rational.
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