SOLUTION: In a lottery game, a player picks six numbers from 1 to 27. If the player matches all six numbers, they win 20,000 dollars. Otherwise, they lose $1.
What is the expected value o
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-> SOLUTION: In a lottery game, a player picks six numbers from 1 to 27. If the player matches all six numbers, they win 20,000 dollars. Otherwise, they lose $1.
What is the expected value o
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Question 1170997: In a lottery game, a player picks six numbers from 1 to 27. If the player matches all six numbers, they win 20,000 dollars. Otherwise, they lose $1.
What is the expected value of this game?
You can put this solution on YOUR website! The expected value is the probability of winning times the prize amount
minus the probability of not winning times the cost of the contest
The total number of combinations of the 6 numbers is N = 27x26x25x24x23x22/6!
since the numbers can be arranged in 6! factorial ways
N = 296010
The expected value E = $20000(1/296010) - $1(296009/296010) = -$0.9324, or about
-93 cents
