Question 582851: A certain lottery ticket costs $1.00 and the probability of winning is 1 in 13,983,816. If the prize is $1,000,000, what is the expected value of a ticket? Round your answer to the nearest penny (two decimal places).
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A certain lottery ticket costs $1.00 and the probability of winning is 1 in 13,983,816. If the prize is $1,000,000, what is the expected value of a ticket? Round your answer to the nearest penny
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Random number values: -1 ; 1 million
Corresponding probs: 13983816/13983816 ; 1/13983816
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E(x) = (-13983816+1,000,000)/13983816 = -12983816/13983816 = -93 cents
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Cheers,
Stan H.
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