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In a lottery, a ticket costs $\$3$, and the jackpot is worth $\$250000$. In all, $100000$ 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)?

RektTheNoob  Sep 1, 2017
 #1
avatar+87301 
+1

 

Expected value =

 

Amt spent * (probability of losing)  +  Jackpot * (probability of winning)  =

 

-3 * (99,999/100000) +   250,000* (1/100000)  ≈  -$0.50

 

 

 

cool cool cool

CPhill  Sep 1, 2017

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