Prize Probability A sweepstakes posted the probabilities of winning each prize a

Question

Prize Probability A sweepstakes posted the probabilities of winning each prize and the prize amounts as shown in the chart to the right. Suppose that one sweepstakes entry costs $1. Find the expected value $2,000,000 1 in 40.000,001 $200,0001 in 20,000,001 $20001 in 10,000.001 of the winnings for any individual entry. Then state how much you can expect to win or lose if you spend $165 in entries. The expected value of the winnings for any individual entry is S Round to the nearest cent as needed.)

Explanation / Answer

Given: The expected return for the above given problem is the sum of product of each prize and its probability

=2,000,000*(1/40,000,001)+200,000(1/20,000,001)+2000(1/10,000,001) = $0.0602

Given if we spend $1 for the entry then the amount we win or lose is the difference between the expected winning amount and the spent amout = $0.0602-$1=-0.9398=-0.94 (approx)

Thus if we spend $1 in entry we lose $0.94.

Similarly when we spend $165, we loose $164.94

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.