Question

Robert bought a $4 lottery ticket such that 1 in 100 would win $9, 1 in...

Robert bought a $4 lottery ticket such that 1 in 100 would win $9, 1 in 1000 would win $90, and 1 in 50 million would win 1 million. What is the expected value of a lottery ticket in dollars?

  

Does Robert expect to earn a profit if he buys 100 tickets?

Select an answer Gain Lose   

By how much?

Math   Statistics-And-Probability   
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Homework Answers

Answer #1

Solution: The correct answers are:

Lose

By how much?

$380

Explanation:

We need to first find the expected value of the given information as:

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