<PRE><B>Question 841599</B>
Suppose you buy 1 ticket for $2 out of a lottery of 500 tickets where the prize for the one winning ticket is to be $100. What is your expected win/loss?
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Random winning numbers::.....98..........-2
Associated probabilities:....1/500.....499/500
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E(x) = [1*98 - 2*499]/500 = -900/500 = -9/5 = -$1.80
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Cheers,
Stan H.
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a) $23.20 
b) -$1.80 
c) $21.00 
d) -$0.80 
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