Question 1008074: PLEASE HELP ME, I would really appreciate it.
A safe containing $1,000,000 is locked with a combination lock. You pay $16 for one guess at the six-digit combination. If you open the lock, you get to keep the million dollars. What is your expectation? (Each of the six digits is a number from 0 to 9. Repeated digits are allowed. Round your answer to the nearest cent.)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A safe containing $1,000,000 is locked with a combination lock.
You pay $16 for one guess at the six-digit combination.
If you open the lock, you get to keep the million dollars.
What is your expectation? (Each of the six digits is a number from 0 to 9. Repeated digits are allowed. Round your answer to the nearest cent.)
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# of possible 6-digit combinations:: 10^6 = 1 million
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Random "winning" amounts:: 9999,984..... -16
Corresponding Probabilites:: 1/10^6.....999,999/10^6
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Expected winnings:: [1*9,999,984 - 16*999,999]/10^6 = -$6.00
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Cheers,
Stan H.
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