SOLUTION: The chance of winning a lottery game is 1 in approximately 21 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $8 million grand prize. Calculate your exp

Question 684743: The chance of winning a lottery game is 1 in approximately 21 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $8 million grand prize. Calculate your expected net winnings for this single ticket. Interpret the result.
Find �= E (x)

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The chance of winning a lottery game is 1 in approximately 21 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $8 million grand prize. Calculate your expected net winnings for this single ticket. Interpret the result.
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Random "winning" values::::::::::: 8x10^6-1::::::::::::::::: -1
Probabilities::::::::::::::::::::: 1/21x10^6::::: (21x10^6-1)/(21x10^6)
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E(x) = [8x10^6-1 - 21x10^6-1]/21x10^6
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= -0.62
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You can expect to lose 62 cents on each dollar you spend on the lottery.
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Cheers,
Stan H.
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