4.6. A ticket for a statewide lottery costs $1. With probability 0.0000001, you win a million dollars
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4.6. A ticket for a statewide lottery costs $1. With probability 0.0000001, you win a million dollars ($1,000,000), and with probability 0.9999999 you win nothing. Let y denote the winnings from buying one ticket. Construct the probability distri- bution for y. Show that the mean of the distribution. equals 0.10, corresponding to an expected return of 10 cents for the dollar paid.
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Related Book For
Statistical Methods For The Social Sciences
ISBN: 9780130272959
4th Edition
Authors: Alan Agresti, Barbara Finlay
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