A lottery has a grand prize of 320000 three runnerup prizes

A lottery has a grand prize of $320,000, three runner-up prizes of $32,000 each, six third-place prizes of $16000 each, and fifteen consolation prizes of $3200 each. If 640,000 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) = -$0.125 = -$0.13 [ANSWER]

x P(x) x P(x)
-1 0.999960938 -0.99996
319999 1.5625E-06 0.499998
31999 4.6875E-06 0.149995
15999 0.000009375 0.149991
3199 2.34375E-05 0.074977
A lottery has a grand prize of $320,000, three runner-up prizes of $32,000 each, six third-place prizes of $16000 each, and fifteen consolation prizes of $3200

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