Question 990164: One state lottery has 900 prizes of $1, 110 prizes of $10, 15 prizes of $65, 5 prizes of $310, 2 prizes of $1260, and 1 prize of $2700. Assume that 28000 lottery tickets are issued and sold for $1.
What is the lottery's expected profit per ticket?
What is the lottery's standard deviation of profit per ticket?
please help me out!
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! One state lottery has 900 prizes of $1, 110 prizes of $10, 15 prizes of $65, 5 prizes of $310, 2 prizes of $1260, and 1 prize of $2700. Assume that 28000 lottery tickets are issued and sold for $1.
What is the lottery's expected profit per ticket?
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E(X) = [900(0)+110(9)+15(64)+5(309)+2(1259)+2699+26967(-1)]/28000
E(X) = -$0.75
Each ticket buyer can expect to lose 75 cents.
The lottery's expected profit per ticket equals 75 cents
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What is the lottery's standard deviation of profit per ticket?
I'll leave that to you.
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Cheers,
Stan H.
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