Calculate the expectation (to the nearest cent) for the Reader's Digest sweepstakes described. Assume there are 197,000,000 entries.

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$10,500,000.00 ENTRY DOCUMENT SWEEPSTAKES Official Disclosure of Dates To be eligible to win the FIVE MILLION DOLLAR Grand Prize, you must return the attached Sweepstakes Entry Document by August 19, 1991. Failure to respond by that date will result in the forfeiture of Grand Prize eligibility. To be eligible to win any of 58,567 other prizes (but not the Grand Prize), return your Sweepstakes Entry Document by March 2, 1992. Grand Prize Distribution Information If you are chosen Grand Prize winner, you will receive FIVE MILLION DOLLARS in your choice of payment options: Either 30 equal yearly payments of $167,000.00 cach OR 360 cqual monthly payments of $14,000.00 each. You must specify your choice of payment option now by detaching the appropriate seal at left and affixing it onto the box provided on your Sweepstakes Entry Document. OFFICIAL PRIZE LIST 1 First Prize...... 2 Second Prizes.... 3 Third Prizes.. 4 Fourth Prizes....... 10 Fifth Prizes........ 400 Sixth Prizes.. 58,147 Seventh Prizes....... Winner's choice of a "Special Edition" Men's or Women's Wristwatch, an $89.00 approximate retail value. $100,000.00 ..$50,000.00 $20,000.00 .$5,000.00 Sponsor .$500.00 $100.00 D.P. Burn SWEEPSTAKES DIRECTOR