Question

Let X = amount of money you win in a state lottery. X has the pmf:

x =	-1	0	5	80	1800	2000000
p(x) =	0.96794993	0.02	0.01	0.002	0.00005	0.00000007

1. What is the expected value for the amount of money you might win?

2.For the discrete random variable what is the probability that you win $5.00 or more?

Answer 1

Solution:

1) The expected value of discreet random variable X is given as follows:

  

The expected amount of money is -0.52794993. Since, the expected amount has negative sign, therefore we can say that this is expected amount of loss.

2) We have to find P(X ≥ 5).

probability that I win $5.00 or more is 0.01205007.