In a lottery, a ticket costs $3, and the jackpot is worth $250,000. In all, 100,000 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)?
Any help would be greatly appreciated!
(I know this has been posted twice before but it never got answered. I hope to set thing straight)
Expected value =
Amt spent * (probability of losing) + Jackpot * (probability of winning) =
-3 * (99,999/100000) + 250,000* (1/100000) ≈ -$0.50
CPhill Sep 1, 2017
Thanks SOOO much!!!
Be warned that the answer is - $0.50 I tried 0.50 on accident.
Thanks Guest, if this is CPhill's answer it would have been nice if you had included the address of the original question/answer.
It is really nice that you have given CPhill the credit though :)