Final answer:
The assertion that a larger lottery pool increases the expected utility of a ticket is false. Expected utility takes into account both the value of outcomes and their probabilities, which in a larger lottery pool means more competition and typically lower chances of winning.
Step-by-step explanation:
False. The statement that the larger the lottery pool, the higher the expected utility of a ticket is not accurate. Expected utility is a concept in economics and decision theory that captures the trade-off between the value of outcomes and the probabilities of their occurrence. The central limit theorem, which states the sampling distribution of the means becomes normal as the sample size increases, does not apply to the expected utility of a lottery ticket.
In fact, as the lottery pool increases, the chance of any single ticket winning typically decreases because there are more tickets to compete with. Moreover, the expected monetary value of a ticket may decline because the prize has to be divided among more potential winners.
However, the actual utility one derives from a lottery ticket could be influenced by several factors such as the total prize amount, the rules of the game, and individual risk preferences, yet these are not directly related to the size of the lottery pool.