SOLUTION: The chance of winning a lottery game is 1 in approximately 21 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $8 million grand prize. Calculate your exp
Algebra ->
Probability-and-statistics
-> SOLUTION: The chance of winning a lottery game is 1 in approximately 21 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $8 million grand prize. Calculate your exp
Log On
Question 684743: The chance of winning a lottery game is 1 in approximately 21 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $8 million grand prize. Calculate your expected net winnings for this single ticket. Interpret the result.
Find µ= E (x)
You can put this solution on YOUR website! The chance of winning a lottery game is 1 in approximately 21 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $8 million grand prize. Calculate your expected net winnings for this single ticket. Interpret the result.
-------
Random "winning" values::::::::::: 8x10^6-1::::::::::::::::: -1
Probabilities::::::::::::::::::::: 1/21x10^6::::: (21x10^6-1)/(21x10^6)
-------
E(x) = [8x10^6-1 - 21x10^6-1]/21x10^6
---
= -0.62
-----
You can expect to lose 62 cents on each dollar you spend on the lottery.
=========================
Cheers,
Stan H.
(