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Consider the old French lottory which there are 90 numbered balls. In the end, 5 numbered balls will be chosen randomly and annouced. People can
Consider the old French lottory which there are 90 numbered balls. In the end, 5 numbered balls will be chosen randomly and annouced. People can choose from buying tickets with one to five numbers on them at one dollar, and respectively they will get 15, 270, 5500, 75000, 1000000 if all numbers on the ticket appear in the final draw. For example, one can purchase a ticket with 3 numbers on the ticket at 1 dollar. If these 3 numbers are all included in the 5 numbers randomly chosen in the end, she got 75000, otherwise the ticket is void and she loses 1 dollar. Calculate the expected payoff for buying tickets with one to five numbers on them respectively
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To find the expected payoff for buying tickets with one to five numbers on them in the described lottery we need to calculate the probabilities and use these probabilities to find the expected value f...Get Instant Access to Expert-Tailored Solutions
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