UCttery: In the New York State Numbers lottery, you pay $1 and can bet that the sum of the numbers that come up is 13. Thebability of winning is 0.06, and if you win, you win $9.50, which is a profit of $ 8.5. If you lose, you lose $1Part 1 of 2(a) What is the expected value of your profit? Round the answer to two decimal places.The expected value of profit is-0.43Part: 1/ 2Part 2 of 2(b) Is it an expected gain or an expected loss? Round the answer to two decimal places.This is an expected (Choose one)of $

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Asked Oct 14, 2019
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UC
ttery: In the New York State Numbers lottery, you pay $1 and can bet that the sum of the numbers that come up is 13. The
bability of winning is 0.06, and if you win, you win $9.50, which is a profit of $ 8.5. If you lose, you lose $1
Part 1 of 2
(a) What is the expected value of your profit? Round the answer to two decimal places.
The expected value of profit is-0.43
Part: 1/ 2
Part 2 of 2
(b) Is it an expected gain or an expected loss? Round the answer to two decimal places.
This is an expected (Choose one)
of $
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UC ttery: In the New York State Numbers lottery, you pay $1 and can bet that the sum of the numbers that come up is 13. The bability of winning is 0.06, and if you win, you win $9.50, which is a profit of $ 8.5. If you lose, you lose $1 Part 1 of 2 (a) What is the expected value of your profit? Round the answer to two decimal places. The expected value of profit is-0.43 Part: 1/ 2 Part 2 of 2 (b) Is it an expected gain or an expected loss? Round the answer to two decimal places. This is an expected (Choose one) of $

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Expert Answer

Step 1

(a)

The expected value of profit is obtained below:

There is 0.06 chance of profit is $8.50, there is a 0.94 chance of loss of $1.

The Expected value of formula is,

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E(X)-ΣΡ(1) - μ.

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Step 2

The expected value o...

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E(x)8.50(0.06)-1(0.94) 0.51-0.94 =-0.43

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