Question

P(x) For a multistate lottery, the following probability x (cash prize, distribution represents the cash prizes of the lottery Grand prize with their corresponding probabilities. Complete parts 200,000 (a) through (c) below. 10,000 100 0.00000000562|| 0.00000012 0.000001831 10 000156178 0.005556668 0.008631032 0.01493052 0.97072364538 Question Viewer (a) If the grand prize is $13,000,000 find and interpret the expected cash prize. If a ticket costs $1, what is your expected profit from one ticket? The expected cash prize is $1 (Round to the nearest cent as needed What is the correct interpretation of the expected cash prize? O A. On average, you will profit $0 25 per lottery ticket OB. You will win $0.25 on every lottery ticket O c. On average, you will win $0.25 per lottery ticket The expected profit from one $1 ticket is $ (b) To the nearest million, how much should the grand prize be so that you can expect a profit? Assume nobody else wins so that you do not have to share the grand prize. S (c) Does the size of the grand prize affect your chance of winning? Explain. O A. Yes, because your expected profit increases as the grand prize increases O B. No, because the expected profit is always $0 no matter what the grand prize is O C. No, because your chance of winning is determined by the properties of the lottery not the payouts.

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Answer 1

Solution o X cash prize, $) Рca) x. PCR) 13,000,000 0.00000000562- 0.07306 200,000 0.00000012 0.024 10,000 0.000001831 0.01831 100 0.000156178 0.0156178 0.00555 6668 0.033896662 0.034524128 0.008631032 0.01493052 0.00479156 0.97072 364533 expected eash prize = Expe = 0.07306+ 0.024+ 0.018314 0:015 617 3 +0'038890662 to.034524128 +0.04479156 -0. 2492 expected cash prize 20.25

@ Interpretation of the expected cash prize If the value of grand prize is $13,000,000 the expected cash prize for one lottery ticket is $0.25 is correct answer expected profit for one ticket = 60.25- =-0.75 & The expected profit from $ =-0.75 grand prize $p can expect a profit assume the value of 30.00000000562*2 + 200,000 X 0.00000012 + 10,000 X 0.000001331 +100x 0.000156178 + 7X0.005556668+ UX 0.009631032 + 3x 0.01493052 +0 =1 = 0.00000000562-* p + 0°/+61401 profit is always © No, because the expected so no matter to option ® is correct