A magazine ran a sweepstakes in which prizes were listed along with the chances of winning: $1,000,000 (1 chance in 70,000,000), $100,000 (1 chance in 120,000,000), $25,000 (1 chance in 120,000,000), $5,000 (1 chance in 35,667,000), and $2,500 (1 chance in 27,500,000). Complete a and b. a. Assuming that there is no cost to enter the sweepstakes, find the expected value of the amount won for one entry. (Round to the nearest tenth as needed.) b. Find the expected value if the cost of entering this sweepstakes is the cost of a postage stamp (3¢). ¢(Round to the nearest tenth as needed.) Is it worth entering this contest? O A. No. It is not worth entering this contest because the new expected value is positive. B. No. It is not worth entering this contest because the new expected value is negative. C. Yes. It is worth entering this contest because the new expected value is negative. O D. Yes. It is worth entering this contest because the new expected value is positive.
A magazine ran a sweepstakes in which prizes were listed along with the chances of winning: $1,000,000 (1 chance in 70,000,000), $100,000 (1 chance in 120,000,000), $25,000 (1 chance in 120,000,000), $5,000 (1 chance in 35,667,000), and $2,500 (1 chance in 27,500,000). Complete a and b. a. Assuming that there is no cost to enter the sweepstakes, find the expected value of the amount won for one entry. (Round to the nearest tenth as needed.) b. Find the expected value if the cost of entering this sweepstakes is the cost of a postage stamp (3¢). ¢(Round to the nearest tenth as needed.) Is it worth entering this contest? O A. No. It is not worth entering this contest because the new expected value is positive. B. No. It is not worth entering this contest because the new expected value is negative. C. Yes. It is worth entering this contest because the new expected value is negative. O D. Yes. It is worth entering this contest because the new expected value is positive.
Chapter9: Sequences, Probability And Counting Theory
Section9.5: Counting Principles
Problem 3SE: Answer the following questions. 3. When given two separate events, how do we know whether to apply...
Related questions
Question
Transcribed Image Text:A magazine ran a sweepstakes in which prizes were listed along with the chances of winning: $1,000,000 (1 chance in 70,000,000), $100,000 (1 chance in
120,000,000), $25,000 (1 chance in 120,000,000), $5,000 (1 chance in 35,667,000), and $2,500 (1 chance in 27,500,000). Complete a and b.
a. Assuming that there is no cost to enter the sweepstakes, find the expected value of the amount won for one entry.
¢(Round to the nearest tenth as needed.)
b. Find the expected value if the cost of entering this sweepstakes is the cost of a postage stamp (3¢).
¢(Round to the nearest tenth as needed.)
Is it worth entering this contest?
O A. No. It is not worth entering this contest because the new expected value is positive.
B. No. It is not worth entering this contest because the new expected value is negative.
C. Yes. It is worth entering this contest because the new expected value is negative.
D. Yes. It is worth entering this contest because the new expected value is positive.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 16 images
Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage