Homework SourseA lottery has a grand prize of 220000 four runnerup prizes o
A lottery has a grand prize of $220,000, four runner-up prizes of $27,500 each, eight third-place prizes of $4400 each, and fourteen consolation prizes of $1100 each. If 880,000 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
The expected net winnings on a $1 ticket is $2.70.
| Amount(x) | p(x) | x*p(x) |
| 219999 | 0.00001 | 2.19999 |
| 27499 | 0.00004 | 1.09996 |
| 4399 | 0.00009 | 0.39591 |
| 1099 | 0.00001 | 0.01099 |
| -1 | 0.99985 | -0.99985 |
| Total | 2.707 |
