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Serhud [2]
2 years ago
10

Please help: what is the probability? If you win what is your net profit? Find the expected value? Been trying for an hour can s

omeone please help

Mathematics
1 answer:
Luba_88 [7]2 years ago
8 0

There are 1000 possible outcomes (from 000 to 999).

Then, the probability of winning is: 1/1000 = 0.001

And the probability of losing is: 999/1000 = 0.999

The net profit is computed as follows:

net profit = winning prize - cost to play

net profit = $394.46 - $1.35

net profit = $393.11

The expected value is computed as follows:

E = probability of winning*net profit - probability of losing*cost to play

E = 0.001*$393.11 - 0.999*$1.35

E = -$0.96

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