Question
A company sends millions of people an entry form for a lucky-draw accompanied by an order form for magazine subscriptions. There will be 3 winners
A company sends millions of people an entry form for a lucky-draw accompanied by an order form for magazine subscriptions. There will be 3 winners in the lucky-draw. The first, second, and third prizes of the lucky-draw are $10,000,000, $1,000,000, and $50,000, respectively. In order to qualify for a prize, a person is not required to order any magazines but has to spend $6 for the delivery services of returning the entry form. At the close of the game, 30 million entry forms are returned. What is the expected gain or loss per a returned entry form?
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