SOLUTION: The chance of winning a lottery game is 1 in approximately 24 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $6 million grand prize. Calculate your exp

Algebra ->  Probability-and-statistics -> SOLUTION: The chance of winning a lottery game is 1 in approximately 24 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $6 million grand prize. Calculate your exp      Log On


   



Question 971347: The chance of winning a lottery game is 1 in approximately 24 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $6 million grand prize. Calculate your expected net winnings for this single ticket. Interpret the result. Find μ=E(x).
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
E(x)=winnings/probability.= $6 million/24 million = $(1/4), which is $0.25
Loss of $0.75 is expected value.