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Vicki is playing the lottery. She must select six numbers from 1 to 99 in a specific order. If she selects the six numbers in
Vicki is playing the lottery. She must select six numbers from 1 to 99 in a specific order. If she selects the six numbers in the correct order, she can win $10,000,000. To play, she must purchase a lottery ticket for $1.What is the expected payoff if Vicki were to buy a ticket? Is it worth risking the loss of $1?
The expected payoff from purchasing one ticket is -$0.24, so it is not worth risking the loss of $1. | |
The expected payoff from purchasing one ticket is $0.06, so it is worth risking the loss of $1. | |
The expected payoff from purchasing one ticket is $0.01, so it is worth risking the loss of $1. | |
The expected payoff from purchasing one ticket is -$0.99, so it is not worth risking the loss of $1. |
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