A lottery has a grand prize of $2,000,000, 4 runner-up prizes of $125,000 each, 11 third-place prizes of $18,000 each, and 25 consolation prizes of $5,000 each. If 13 million tickets are sold for $1 each, and the probability of any ticket winning is the same as that of any other winning, find the expected return on a $1 ticket.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
QUESTION 4
A lottery has a grand prize of $2,000,000, 4 runner-up prizes of $125,000 each, 11 third-place prizes of $18,000 each, and 25 consolation prizes of $5,000 each. If 13
million tickets are sold for $1 each, and the probability of any ticket winning is the same as that of any other winning, find the expected return ona $1 ticket.
Transcribed Image Text:QUESTION 4 A lottery has a grand prize of $2,000,000, 4 runner-up prizes of $125,000 each, 11 third-place prizes of $18,000 each, and 25 consolation prizes of $5,000 each. If 13 million tickets are sold for $1 each, and the probability of any ticket winning is the same as that of any other winning, find the expected return ona $1 ticket.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman