A lottery has a grand prize of 80000 five runnerup prizes of

A lottery has a grand prize of $80,000, five runner-up prizes of $16,000 each, twelve third-place prizes of $2000 each, and twenty-two consolation prizes of $200 each. If 400,000 tickets are sold for $1 each and the probability of any one ticket winning is the same as that of any other ticket winning, find the expected net winnings on a $1 ticket. (Round your answer to two decimal places.)

Solution

Consider:

Thus,

E(x) = Sum(xP(x)) = -$0.43 [ANSWER]