Question

Suppose an “Instant Lotto” ticket costs $5, and the chances of winning the $500 prize are...

  1. Suppose an “Instant Lotto” ticket costs $5, and the chances of winning the $500 prize are 1/10,000. There are no other prizes.
    1. What is your expected value for this game for each ticket you buy?
    2. Interpret what the expected value would mean in this situation, in words that a non-statistics student would understand. (It is not necessary to calculate the expected value here.)
    3. Would you play this game? Why or why not?
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