SOLUTION: In a state lottery a five-digit integer is selected at random. If a player
bets 1 dollar on a particular number, the payoff (if that number is selected)
is $500 minus the $1 paid
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Probability-and-statistics
-> SOLUTION: In a state lottery a five-digit integer is selected at random. If a player
bets 1 dollar on a particular number, the payoff (if that number is selected)
is $500 minus the $1 paid
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Question 1151738: In a state lottery a five-digit integer is selected at random. If a player
bets 1 dollar on a particular number, the payoff (if that number is selected)
is $500 minus the $1 paid for the ticket. Let X equal the payoff to the better.
Find the expected value of X. Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! The probability of winning is 1/99999 and that payoff is (500-1)/99999 or 0.00499
The probability of losing is 99998/99999 and that loss is that fraction or -0.99999 which really rounds to 1.00
so the expected value is - 1-0.00499 or -$0.99501 or -$0.995.
Note that I am not using 0 here.
