Find the risk preference of people who play lottery

Reference no: EM13130868

A state lottery pays $10,000 to anyone whose lottery ticket has a winning five digit lottery number. Any number from 00000 to 99999 is a possible winner and each ticket costs $1. What is the expected value of purchasing a ticket in this lottery? How much net revenue does the state expect, on average from each ticket? What is the risk preference of people who play this lottery?

Reference no: EM13130868

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