Question

Suppose you play a $2 scratch off lottery game where there is a 1 in 4...

  1. Suppose you play a $2 scratch off lottery game where there is a 1 in 4 chance to win $2, a 1 in 10 chance to win $10, a 1 in 15 chance to win $250, and a 1 in 35 chance to win $5000.
    1. Construct a probability distribution for x where x represents the possible net winnings, i.e., winnings minus cost, including the scratch off lottery games that yield no winnings.
    2. Use the probability distribution to calculate the expected value .
    3. Write an explanation for what the expected value tells us as it relates to the lottery games’ profitability for the ticket holder. Be very specific and include units.

d. Are the parameters for this particular lottery game feasible in a real-world setting? Explain your answer.

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Once a woman won​ $1 million in a​ scratch-off game from a lottery. Some years​ later,...
Once a woman won​ $1 million in a​ scratch-off game from a lottery. Some years​ later, she won​ $1 million in another​ scratch-off game. In the first​ game, she beat odds of 1 in 5.2 million to win. In the​ second, she beat odds of 1 in 705,600. ​(a) What is the probability that an individual would win​ $1 million in both games if they bought one​ scratch-off ticket from each​ game? ​(b) What is the probability that an individual...
3. You pay $5 to play a California Lottery game. There is a 0.3 chance that...
3. You pay $5 to play a California Lottery game. There is a 0.3 chance that you win $5 0.1 chance that you win $10, a 0.01 chance that you win $50. (a) If X is the variable which represents your total winnings/losses, write the probability distribution for X. (b) Compute the expected value E(X). Interpret this value.
The chance of winning a lottery game is 1 in approximately 2323 million. Suppose you buy...
The chance of winning a lottery game is 1 in approximately 2323 million. Suppose you buy a​ $1 lottery ticket in anticipation of winning the ​$77 million grand prize. Calculate your expected net winnings for this single ticket. Interpret the result. Find muμequals=Upper E left parenthesis x right parenthesisE(x). muμequals=nothing
In Oregon Lottery $3 Scratch It games a ticket costs $3.00 and the prizes are listed...
In Oregon Lottery $3 Scratch It games a ticket costs $3.00 and the prizes are listed belos:   a. Complete the Table Prize Probability $30,000 .000006 $100 .00007 $10 Nothing .9749 b. What is the expected Value of money won or lost? c. What is the variance of money won or lost? d. On average per game is Oregon making money or losing money, and by how much?
3.In a lottery, you pick 4 digits (from 1-9) in order (the digits may be repeated)....
3.In a lottery, you pick 4 digits (from 1-9) in order (the digits may be repeated). A lottery ticket costs $1, and you win $5000 if your ticket matches the winning numbers. What is the expected value of playing this lottery? What is the standard deviation of the relevant probability distribution?
You play 10 consecutive games of chance. In one single game, you win 100 dollars with...
You play 10 consecutive games of chance. In one single game, you win 100 dollars with probability 0.6, otherwise, you lose 150 dollars with probability 0.4. Assume that the outcomes of these 10 games are independent. a) Find the probability that you will win at least 500 dollars in these 10 games. b) Find your expected gain in these 10 games. (Hint: Write the gain as a function of the number of games in which you won.)
One plays a game where you spin a spinner with the numbers 1 through 10 on...
One plays a game where you spin a spinner with the numbers 1 through 10 on it in equal parts.  It costs $7 to play.  If you spin a two then you win $25.  If you spin an odd number then you win $10.  You decide to play the game once.  What are your expected winnings?
Suppose that you and your friend alternately play a game. Both of your and your friend’s...
Suppose that you and your friend alternately play a game. Both of your and your friend’s chance of winning in each game is 0.5. All the outcomes are independent. Each of you will play 100 games. Estimate the probability that you will win at least 5 more games than your friend. Both Y and Z follows Bin(100, 0.5). Y = number of games you win Z = number of games your friend wins.
Suppose that you and your friend alternately play a game. Both of your and your friend’s...
Suppose that you and your friend alternately play a game. Both of your and your friend’s chance of winning in each game is 0.5. All the outcomes are independent. Each of you will play 100 games. Estimate the probability that you will win at least 5 more games than your friend. Both Y and Z follows Bin(100, 0.5). Y = number of games you win Z = number of games your friend wins.
In a game of “Chuck a luck” a player bets on one of the numbers 1...
In a game of “Chuck a luck” a player bets on one of the numbers 1 to 6. Three dice are then rolled and if the number bet by the player appears i times (where i equals to 1, 2 or 3) the player then wins i units. On the other hand if the number bet by the player does not appear on any of the dice the player loses 1 unit. If x is the players’ winnings in the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT