<PRE><B>Question 729687</B>
Tyrone pays $5 for a lottery ticket. There is a 0.1% 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. 
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Random winning values: 195......45......20..........-5
Probabilities:::::::::  1/100...1/100...5.2/100....92.5/100

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Expected Winning: [1*195 + 1*45 + 5.2*20 - 5*92.5)/100 = -118.5/100
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= -$1.19
You can expect to lose $1.19 every time you play the game.
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Cheers,
Stan H.</PRE>