Ux+ rx= w; solving for x
2 answers:
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Answer:
Loss of $1.20
Step-by-step explanation:
The possible outcomes for this lottery and their probabilities are:
- a 1 in 100 chance of winning $450
- a 2 in 100 chance of winning $120
- a 4 in 100 chance of winning $30
- a 93 in 100 chance of losing $10
Therefore, the expected value of this lottery when buying one ticket is:
Therefore, you are expected to lose $1.2 per ticket.