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Doreen receives in the mail an offer to enter a national sweepstakes. The prizes and chances of winning are listed in the offer as: $5
Doreen receives in the mail an offer to enter a national sweepstakes. The prizes and chances of winning are listed in the offer as: $5 million, one chance in 65 million; $150,000, one chance in 6.5 million; $5,000, one chance in 650,000; and $1,000, one chance in 65,000. If it costs Doreen 44 cents to mail her entry, what is the expected value of the sweepstakes to her?
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