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kakasveta [241]
3 years ago
10

Suppose that $1 lottery tickets have the following probabilities and values: 1 in 5 to win a free ticket (worth $1), 1 in 100 to

win $5, 1 in 100,000 to win $1000, and 1 in 10 million to win $1 million. What is the expected value of a lottery ticket to the consumer
Business
1 answer:
Fantom [35]3 years ago
4 0

Answer:

$0.36

Explanation:

Expected value of the lottery ticket = (p1 x a1) + (p2 x a2) + (p3 x a3) + (p4 x a4)

p1 = probability of winning $1 = 1/5 = 0.2

a1 = $1

p2 =  probability of winning $5 = 1/100 = 0.01

a2 = $5

p3 =  probability of winning $1000 = 1/100,000 = 0.00001

a3 = $1000

p4 =  probability of winning $1 million = 1/10,000,000 = 0.0000001

a4 = $1 million

(0.2 x 1) + (0.01 x 5) + (0.00001 x 1000) + (1,000,000 x 0.00001) = $0.36

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Marigold Corporation's December 31, 2020 balance sheet showed the following: 6% preferred stock, $20 par value, cumulative, 4000
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In many cities, grocery stores find that their sales are much greater on days when they have advertised their special bargains.
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This question is incomplete, the options are missing. The options are the following:

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To begin with, the criteria used by those shoppers could be understood as the one that tries to minimize the difference between the inputs and the outputs due to the fact that when they see the particular good in offer they tend to buy it more frequently that when the same good is not in offer, however they do not increase the amount of goods bought instead they keep that number the same so they only take advantage of the offer itself and that is why that the company does not increase the physical volumen of the goods sold.

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