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ikadub [295]
3 years ago
12

A lottery ticket has a grand prize of $31 million. The probability of winning the grand prize is .000000018. Determine the expec

ted value of the lottery ticket.
Mathematics
1 answer:
vlabodo [156]3 years ago
5 0

Answer:

$0.558

Step-by-step explanation:

The expected value is the sum of the value of each outcome times the chance that it happens. In this case, there are two outcomes:

  1. Win $31 million
  2. Win $0

Then our expected value can be calculated as:

EV=(31,000,000)(0.000000018)+(0)(1-0.000000018)=0.558

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