SOLUTION: One state lottery has 1,100 prizes of $1, 105 prizes of $10, 25 prizes of $60, 5 prizes of $290, 2 prizes of $1,180, and 1 prize of $2,600. Assume that 26,000 lottery tickets are i

Algebra ->  Probability-and-statistics -> SOLUTION: One state lottery has 1,100 prizes of $1, 105 prizes of $10, 25 prizes of $60, 5 prizes of $290, 2 prizes of $1,180, and 1 prize of $2,600. Assume that 26,000 lottery tickets are i      Log On


   

Question 1068560: One state lottery has 1,100 prizes of $1, 105 prizes of $10, 25 prizes of $60, 5 prizes of $290, 2 prizes of $1,180, and 1 prize of $2,600. Assume that 26,000 lottery tickets are issued and sold for $1.
What is the lottery's expected profit per ticket?
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
Find the total profit,
P=26000%281%29-1100%281%29-105%2810%29-25%2860%29-5%28290%29-2%281180%29-1%282600%29
P=15940
Now divide by the total number of tickets,
PPT=15940%2F26000=0.613
61.3 cents per ticket