Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Probability, Random Variables, And Random Processes

Authors: Hwei P Hsu

3rd Edition

0071824774, 9780071824774

More Books

Students also viewed these Mathematics questions

Question

The personal characteristics of the sender

Answered: 1 week ago

Question

The quality of the argumentation

Answered: 1 week ago