document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=116159>Question 116159</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose you buy 1 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?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #84793 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=84793\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Suppose you buy 1 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?<BR>\n" );
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document.write( "The \"Winnings\" random variable has values -1 and 499<BR>\n" );
document.write( "The associated probabilities are P(-1)= 999/1000; P(499)=1/1000<BR>\n" );
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document.write( "Expected Value = -1(999/1000) + 499(1/1000) = -500/1000 = -50 cents<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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