SOLUTION: Please help me solve this problem I came up with the answer of .182 but that just does not seem correct. Thank you A lottery offers one $1000 prize, one $500 prize, and five $10

Algebra ->  Algebra  -> Probability-and-statistics -> SOLUTION: Please help me solve this problem I came up with the answer of .182 but that just does not seem correct. Thank you A lottery offers one $1000 prize, one $500 prize, and five $10      Log On

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Question 129088: Please help me solve this problem I came up with the answer of .182 but that just does not seem correct. Thank you
A lottery offers one $1000 prize, one $500 prize, and five $100 prizes. One thousand tickets are sold at $3.00 each Find the expectation if a person buys two tickets.
Answer by solver91311(12126) About Me  (Show Source):
You can put this solution on YOUR website!
If you bought all 1000 tickets, it would cost you $3000, and you would win all of the prizes, so you would get 1000 + 500 + 5(100) = $2000 back. 2000%2F3000=2%2F3, so for every $1 you wager, you have an expectation of $(2/3). Buying two tickets costs you $6. 6 X 2/3 = 4, so your expectation for 2 tickets is $4.

Go to Las Vegas instead. Slot machines pay out roughly $0.90 per $1.00. You'll lose your money much more slowly.