Answer:
I assume Josh and Peyton are his friends and both gave him advice on what to do with half of the money from the big lottery win.
Let's say Josh said "save it or invest it for your retirement" and Peyton said "use it to keep playing the lottery.
We will now look at the sense in each piece of advice!
Step-by-step explanation:
JOSH
By investing the $250,000 (half of the money won), Patrick will be sure that the money is available for him anytime and would even have gotten interest, by the time he's ready to use it.
PEYTON
By playing the lottery continuously, Patrick could get lucky once in a while and win big again. How big though?
Analyzing with the figures given,
$20 gets Patrick a lottery ticket.
$250,000 will get him 12,500 lottery tickets!
Whether he's buying the tickets at once or he'll play the lottery once in a while, I'll say he has good chances of winning big again.
So if the probability of winning big after purchasing up to 12,500 tickets is close to 1, Patrick should play the lottery with the $250,000
If the probability of winning big after purchasing 12,500 lottery tickets is close to 0 (closer to 0 than it is to 1) then Patrick should invest the $250,000 in retirement.
