<PRE><B>Question 729471</B>
Tyrone pays $5 for a lottery ticket. There is a .1% chance that he will win $200, a 1% chance that he will win $50, and a 5.2% chance that he will win $25 (Otherwise he wins nothing). Find his expected payoff. How much can he expect to win or lose on average? Don&#39;t forget to include the price of the ticket!
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Random Winning values: ......195......45.....20.........-5
Probabilities::::::::: .......1/100...1/100..5.2/100...92.8/100

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Expected winnings = [195 + 45 + 104 -464]/100 = -120/100 = -$1.20

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Cheers,
Stan H.
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