Hi,

Suppose you buy 1 ticket for $2 out of a lottery of 500 tickets 

where the prize for the one winning ticket is to be $100.

What is your expected win/loss?

  chance of winning.  Chance of losing 

E = .002*98 - (499/500)*2 = $ -1.80 

Answer by stanbon(75887)   (Show Source): You can put this solution on YOUR website!
 Suppose you buy 1 ticket for $2 out of a lottery of 500 tickets where the prize for the one winning ticket is to be $100. What is your expected win/loss?

------

Random winning numbers::.....98..........-2

Associated probabilities:....1/500.....499/500

-----

E(x) = [1*98 - 2*499]/500 = -900/500 = -9/5 = -$1.80

===========================

Cheers,

Stan H.

===========================



a) $23.20 

b) -$1.80 

c) $21.00 

d) -$0.80 

 

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