SOLUTION: Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the one winning ticket is to be $500, what are your expected winnings?
Algebra ->
Equations
-> SOLUTION: Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the one winning ticket is to be $500, what are your expected winnings?
Log On
Question 260115: Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the one winning ticket is to be $500, what are your expected winnings? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the one winning ticket is to be $500, what are your expected winnings?
-----
Let the random variable be "your winnings".
Values are -1 and 499
----
Probabilites are 2999/3000 and 1/3000
-------------------------------------------
E(x) = -1(2999/3000) + 499(1/3000)
= (-2999 + 499)/3000
= (-2500)/3000
= -$0.83
----
You can expect to lose 83 cents on your ticket.
=================================================
Cheers,
Stan
(