Suppose that a lottery has the following odds: Amount Won Probability of Winning 0 3/5 2 1/5 5 1/10 10 3/50 50 9/250 100 1/250 1. If you pay $7 to play this game, what is the expected amount of money you would gain after playing? 2. What amount of money should you pay if you don’t want to lose any money on average?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Suppose that a lottery has the following odds:
| Amount Won | Probability of Winning |
| 0 | 3/5 |
| 2 | 1/5 |
| 5 | 1/10 |
| 10 | 3/50 |
| 50 | 9/250 |
| 100 | 1/250 |
1. If you pay $7 to play this game, what is the expected amount of money you would gain after playing?
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