Homework Soursein the state lottery you pay 1 dollar and can bet that the s
in the state lottery you pay 1 dollar and can bet that the sum of the numbers that come up is 13. the probability of winning is 0.075, and if you
Solution
Profit =$7
Lose =$1
value
P
p*v
win
7
0.075
0.525
lose
-1
0.925
-0.925
Total
-0.40
Expected value = -0.40
This means that the player, on average, can expect to lose 40 cents per game
| value | P | p*v | |
| win | 7 | 0.075 | 0.525 |
| lose | -1 | 0.925 | -0.925 |
| Total | -0.40 |
