Suppose a lottery with 1,000,000 tickets has a first prize of $200,000, three second prizes of $60,000 each and 100 third prizes of $200 each. a) What is the probability that a ticket wins the first prize? b) What is the probability that a ticket wins some prize ? c) What is the fair price of a ticket?

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 4ECP: Show that the probability of drawing a club at random from a standard deck of 52 playing cards is...
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Suppose a lottery with 1,000,000 tickets has a first prize of $200,000, three second prizes of $60,000 each and 100 third prizes of $200 each.

a) What is the probability that a ticket wins the first prize?

b) What is the probability that a ticket wins some prize ?

c) What is the fair price of a ticket?

d) How much should the state charge for a ticket if it needs 10% of the revenue for overhead and wants to make $500,000 profit?

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