50% chanceLoss of 25 $50% chanceWin of X $ X should be at least          $ to make the lottery acceptable.

Question

50% chanceLoss of 25 $50% chanceWin of X $ X should be at least          $ to make the lottery acceptable.
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Solution 1

To make the lottery acceptable, the win should at least cover the potential loss. In this case, the loss is $25.

Given that there's a 50% chance of either outcome, the win should be equal to the loss to break even. Therefore, X should be at least $25.

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Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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