Homework SourseA lottery has a grand prize of 160000 three runnerup prizes
A lottery has a grand prize of $160,000, three runner-up prizes of $20,000 each, nine third-place prizes of $3200 each, and eleven consolation prizes of $320 each. If 800,000 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 $1 ticket.
Solution
Consider:
Thus,
E(x) = -$ 0.6846 [ANSWER]
| x | P(x) | x P(x) |
| 159999 | 0.00000125 | 0.199999 |
| 19999 | 0.00000375 | 0.074996 |
| 3199 | 0.00001125 | 0.035989 |
| 319 | 0.00001375 | 0.004386 |
| -1 | 0.99997 | -0.99997 |
