The chance of winning a lottery game is 1 in approximately 25 million. Suppose y

Question

The chance of winning a lottery game is 1 in approximately 25 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 u-E(x). Round to the nearest hundredth as needed. Do not include the symbol in your answer) Interpret the result, Choose the correct answer below. Your average (1) for a large number of games would be per game. (Round to the nearest hundredth as needed.) losses winnings.

Explanation / Answer

The probability of winning a lottery game = 1/ 25 million

Expected net winnings = probability of win * win amount + probability of loss * (-lottery amount)

= 1/ 25 million * 6 million + (1- 1/ 25 million) * (-1) = 6/25 - 1 (Assuming (1- 1/ 25 million) nearly equal to 1)

= -19/25 = -0.76

As, it is negative, there will be average loss per game.

Your average (1) losses for a large number of games would be $ 0.76 per game.

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