Sweepstakes A sweepstakes offers a first prize of , second prize of , and third prize of . Suppose that two million people enter the contest and three names are drawn randomly for the three prizes.
(a) Find the expected winnings for a person participating in this contest.
(b) Is it worth paying a dollar to enter this sweepstakes?
The expected value for a person participating in the contest.
The expected value is given as,
Here, is the amount of payout and is the probability of payout.
A sweepstakes offers a first prize of , second prize of , and third prize of , and two million people enter in the contest.
The total outcome is . Since the probability of winning the first prize is , the probability of winning the second prize is , and the probability of winning the third prize is .
Calculate the expected value of the game
Whether it is worth paying a dollar to enter the sweepstakes.
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