6. In a statewide lottery, one can buy a ticket for $1. With probability .0000001. one wins...
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6. In a statewide lottery, one can buy a ticket for $1. With probability .0000001. one wins a million dollars (S1,000,000). and with probability .9999999 one wins nothing (SO).
a) Let Y denote the winnings from buying one ticket. Construct the probability distribu- tion for Y. Show that the mean of the distribution equals 10. corresponding to an expected return of 10 cents for the dollar paid.
b) The profit X from buying a single $1 ticket equals the winnings from playing the lottery minus the dollar paid for the ticket. that is. X Y 1. Construct the probability distribution of X. and find its mean. Interpret
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Related Book For
Statistical Methods For The Social Sciences
ISBN: 9780135265260
3rd Edition
Authors: Alan Agresti, Barbara Finlay
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