Question
Imagine you are doing research for a term paper in your English class and you have chosen the topic to be The Benefits and Costs
Imagine you are doing research for a term paper in your English class and you have chosen the topic to be "The Benefits and Costs of My State's Lottery". You find the following information for your state's lottery:
Lottery summary
Prize Probability
Jackpot 1 in 160,000,000
$16,000 1 in 150,000
$900 1 in 13,000
$6 1 in 175
$2 1 in 60
You know that it costs $2to purchase the lottery ticket in order to play the game. What would you conclude in your term paper regarding the expected value of the game (includingpurchasing the ticket), if the jackpot were to be set at215,000,000?
(Round to the nearest cent.)
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