document.write( "Question 322467: if a man purchases a lottery ticket, he can win a first place prize of 45000 or a second place prize of $2000 with probabilities of 0.001 and 0.003. What should be the price of one ticket? \n" ); document.write( "
Algebra.Com's Answer #230879 by stanbon(75887)![]() ![]() ![]() You can put this solution on YOUR website! if a man purchases a lottery ticket, he can win a first place prize of 45000 or a second place prize of $2000 with probabilities of 0.001 and 0.003. What should be the price of one ticket? \n" ); document.write( "------------------------------------------ \n" ); document.write( "Expected gain = 0.001*45000 + 0.003*2000 = $51 \n" ); document.write( "--------------- \n" ); document.write( "For the game to \"fair\" they should pay $51 to play the game. \n" ); document.write( "================= \n" ); document.write( "Cheers, \n" ); document.write( "Stan H. \n" ); document.write( " |