Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A new lottery ticket on the market has players pay $2 to have the chance to win up to $1,000 instantly in cash prizes. Let

image text in transcribed
image text in transcribed
A new lottery ticket on the market has players pay $2 to have the chance to win up to $1,000 instantly in cash prizes. Let X be the discrete random variable of cash prizes available. X can take the values of $0, $1, $2, $5, $1000. You are told that expected value of winnings per game is $0.45. Which of the following is the best interpretation of the expected value of the cash prize? O a. In the long run, after playing many lottery tickets, players are expected to win $0.45, on average per game played for $2. b. In the long run, after playing many lottery tickets, players are expected to lose $0.45, on average per game played for $2. O c. In the long run, a player will always make a profit. O d. Each time a player buys a lottery ticket, they can expect to lose $0.45 per game played for $2. O e. Each time a player buys a lottery ticket, they can expect to win $0.45 per game played for $2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Physics For Scientists And Engineers

Authors: Raymond A Serway, John W Jewett

10th Edition

1337671711, 9781337671712

More Books

Students also viewed these Mathematics questions