document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=128448>Question 128448</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/013113941x/algebrahomeworkh>Fundamentals of Mathematics</A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> A special New York State lottery offers a grand prize of $100,000, three second prizes of $10,000, and ten third prizes of $1000. The winning ticket can be any six-digit number from 000,000 to 999,999. If a person buys one ticket, what is a fair price to pay for the ticket? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #94029 by </B><A HREF=/tutors/aboutme.mpl?userid=oscargut><B>oscargut(2103)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=oscargut><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/cgi-bin/show-face.mpl?user=oscargut><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=94029\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You have in this lottery 1000000 of posibilities<BR>\n" );
document.write( "You have to find the expected value of X= value to win\r<BR>\n" );
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document.write( "You can win 100000 or 10000 or 0<BR>\n" );
document.write( "P(X=100000)=1/1000000<BR>\n" );
document.write( "P(X=10000)=3/1000000<BR>\n" );
document.write( "P(X=1000)=10/1000000\r<BR>\n" );
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document.write( "so the fair price = fp = 100000(1/1000000)+10000(3/1000000)+1000(10/1000000)<BR>\n" );
document.write( "=1/10+3/100+1/100=0.104\r<BR>\n" );
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document.write( "R: the fair price is fp = $ 0.104 </SPAN>\n" );
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