SOLUTION: A lottery ticket costs $10. There is a probability of .000001 that you win $3 million and a probability of .001 that you win $1,000. In all other cases, you win nothing.
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Question 1096267: A lottery ticket costs $10. There is a probability of .000001 that you win $3 million and a probability of .001 that you win $1,000. In all other cases, you win nothing.
What is the expected value of the ticket?
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
3000000 x 0.000001=3
1000 x 0.001=1
3+1=4
Cost of ticket:$10
Expected value: $4-$10=-$6 loss
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