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In a lottery, a ticket costs 3 dollars, and the jackpot is worth 250000 dollars. In all, 200000 tickets are sold, one ticket is randomly drawn, and the winner is awarded the jackpot. What are the expected winnings in dollars of buying one ticket (including the cost of the ticket)?

 Apr 12, 2021
 #1
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Expected  winnings =

 

Prize money * probability  of winning  -  cost of ticket * probability  of not winning  =

 

250000  ( 1/200000)   -   3 ( 199999/200000)  ≈   -$1.75

 

 

cool cool cool

 Apr 12, 2021

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