SOLUTION: You buy a ticket for $1 out of a lottery of 1,000 tickets where the prize for the one winning ticket is to be $500. What are your expected winnings?

Question 736314: You buy a ticket for $1 out of a lottery of 1,000 tickets where the prize for the one winning ticket is to be $500. What are your expected winnings?
Found 2 solutions by lynnlo, stanbon:
Answer by lynnlo(4176) (Show Source): You can put this solution on YOUR website!
500/1,000
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
You buy a ticket for $1 out of a lottery of 1,000 tickets where the prize for the one winning ticket is to be $500. What are your expected winnings?
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Random "winning" values:....499.........-1
Probabiities...........:.....1/1000...999/1000
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Expected "winnings" = (499-999)/1000 = -500/1000 = -50 cents
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Cheers,
Stan H.
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