Option C: Cash4Life, Lucky4Life or similar (groups of 2): 1. Find the expected value without the lifetime prizes considered. 2. Find the expected value assuming the cash option will be selected rather than the annuity 3. Find the expected value if the annuity will be paid for 20 years. (minimum the lottery will pay out) 4. Find the expected value if the annuity will be paid for 50 years. 5. If none of the above values made buying a ticket "worth it" how long would you have to receive the annuity for the ticket to be "worth it"? For each of the above make sure to answer the question is it "worth it" to buy tickets?
Option C: Cash4Life, Lucky4Life or similar (groups of 2): 1. Find the expected value without the lifetime prizes considered. 2. Find the expected value assuming the cash option will be selected rather than the annuity 3. Find the expected value if the annuity will be paid for 20 years. (minimum the lottery will pay out) 4. Find the expected value if the annuity will be paid for 50 years. 5. If none of the above values made buying a ticket "worth it" how long would you have to receive the annuity for the ticket to be "worth it"? For each of the above make sure to answer the question is it "worth it" to buy tickets?
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 69E
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