Question
Can you help me answer the following problem question with an explanation? Thank you. The winnings on a lottery scratchcard are defined by the random
Can you help me answer the following problem question with an explanation?
Thank you.
The winnings on a lottery scratchcard are defined by the random variable, X =win.
It is known that the expected winnings has value E(X) = 4 and that the variance of winnings has value V(X) = 2.
A player pays 6 euro for the scratchcard.
Define the random variable Y as Y =Profit/Loss.
(i) Find the expected profit/loss, i.e. find the value of E(Y).[i](whole number)
(ii) Find the value of V(Y).[ii](whole number)
(iii) Is this a fair game?[iii](Insert your choice a/b/c/d).
a: no, because E(Y) is negative
b: no, because V(Y) is positive
c: yes, because E(X) is positive
d: yes, because E(Y)= 0
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