SOLUTION: Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the one winning ticket is to be $500, what are your expected winnings?

SOLUTION: Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the one winning ticket is to be $500, what are your expected winnings?

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Question 257288: Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the one winning ticket is to be $500, what are your expected winnings?
Answer by drk(1908) (Show Source): You can put this solution on YOUR website!
Expected value is
np = (1/3000)*($500) = $(1/6) = 16.66 cents
you pay $1, so your expected winnings would be
.16666 - 1.00 = -$ 0.83 cents
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