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 |
