Final answer:
Risk-neutral decision-making behavior is demonstrated when the same individual opts to both purchase insurance and a lottery ticket in decision analysis.
Step-by-step explanation:
When the same individual opts to both purchase insurance and a lottery ticket in decision analysis, they demonstrate risk-neutral decision-making behavior. Risk-neutral individuals weigh the potential benefits and costs of different options and are neither risk-averse nor risk-seeking. When an individual chooses both to purchase insurance (which is a risk-averse behavior) and a lottery ticket (which is a risk-seeking behavior), it suggests a combination of risk-averse and risk-seeking preferences. This behavior is indicative of risk-neutral decision-making, where the individual is neither strongly averse to nor actively seeking risk, but instead is making decisions that balance between risk-averse and risk-seeking tendencies.