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Nikitich [7]
2 years ago
15

11. Suppose you buy 1 ticket for $1 out of a lottery of 1,000 tickets where the prize for the one winning ticket is to be $500.

What is your expected value?
-$0.50
-$1.00
-$0.40
$0.00
Mathematics
2 answers:
IrinaK [193]2 years ago
7 0
50 cents because the prize is half the number of tickets and 50 is half of the dollar
erastovalidia [21]2 years ago
6 0

Answer:

-50 cents

Step-by-step explanation:

The "Winnings" random variable has values -1 and 499

The associated probabilities are P(-1)= 999/1000; P(499)=1/1000

-----------------------------

Expected Value = -1(999/1000) + 499(1/1000) = -500/1000 = -50 cents

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