Question

A magazine subscription service is having a contest in which the prize is 80,000. if the company receives 1 million entries, what is the expectation of the contest?
$____

Answer 1

Answer:

Expectation of the contest = $0.08

Step-by-step explanation:

Amount of the contest prize = $80000

Total entries received = 1 million

Probability of winning the contest = $\frac{1}{1000000}$

Expectation of the contest will be determined by the formula

P = (winning amount) × (probability to win the contest)

  = $80000\times \frac{1}{1000000}$

  = $0.08

Therefore, the expectation of the contest will be $0.08.