Question

You buy a lottery ticket to a lottery that costs $10 per ticket. There are only 100 tickets available to be sold in this lottery. In this lottery there are one $475 prize, two $95 prizes, and four $30 prizes. Find your expected gain or loss. (Round your answer to two decimal places.)

Answer 1

There is a profit of $39.7.

It is given that there 100 tickets costing $10 per ticket.

You must look first for the probability of the 4 prizes which are $475, $195, $30, and no prize.

P ($475 prize) = 1/100 or 0.01

P ($95 prize) = 2/100 or 0.02

P ($30 prize) = 4/100 or 0.04

P (No prize) = 100/100 – 1+2+4/100 =93/100 .93

Expected gain or loss is computed by: (P(x)* n)

E= (475-10)*.01 + (95-10)*0.02 + (30-10)* 0.04 + (-10)*.93

= 46.5 + 1.70 + 0.8 – 9.3

E = 39.7

There is a profit of $39.7.

To know more about probability visit: brainly.com/question/13604758

#SPJ4