Question 128448
You have in this lottery 1000000 of posibilities
You have to find the expected value of X= value to win

You can win 100000 or 10000 or 0
P(X=100000)=1/1000000
P(X=10000)=3/1000000
P(X=1000)=10/1000000

so the fair price = fp = 100000(1/1000000)+10000(3/1000000)+1000(10/1000000)
=1/10+3/100+1/100=0.104

R: the fair price is fp = $ 0.104