A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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Consider a lottery with 100 million tickets in which each ticket has a unique number. Each ticket is sold for​ $1, and one ticket is drawn for a single prize of​ $75 million​ (and no other​ prizes). If you were to spend​ $1 million to purchase 1 million lottery​ tickets, what would the most likely result​ be?

A) You would be the lottery winner. Buying 1 million tickets gives you a​ 1% chance of​ winning, which is a much higher chance than the people who bought one ticket have.
B) You would win back​ $750,000 of your​ $1 million. The expected value in buying 1 million tickets is​ $750,000.
C) You would be the lottery winner. Buying 1 million tickets increases your chances of winning by 1 million percent.
D) You would lose your entire​ $1 million. If you spend​ $1 million on​ something, you have​ $1 million less than you had before.​ Therefore, you lost your entire​ $1 million.
E) You would lose your entire​ $1 million. No matter how many tickets are​ bought, the chance of winning the lottery is still 1 in 100 million.
F) You would win back​ $750,000 of your​ $1 million. You will lose about 25 cents per​ ticket, so​ you'll end up with​ $750,000 in the end.
 
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