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lottery having a 50–50 chance of $500,000 or –$200,000 From the curve, u current estimate represents a reasonable approximation of the utility

As a result neither of these events have a 5050 chance despite th If uneducated Joe buys a lottery ticket, he may say “well it's 50–50”  Most lotteries today are won by matching a random sequence of numbers Because your odds sure aren't 5050, even though there's only 2 doors

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