anonymous
  • anonymous
You buy a lottery ticket to a lottery that costs $10 per ticket. There are only 100 tickets available to be sold in this lottery. In this lottery there are one $480 prize, two $75 prizes, and four $20 prizes. Find your expected gain or loss. (Round your answer to two decimal places.)
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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chestercat
  • chestercat
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anonymous
  • anonymous
|dw:1436664920532:dw|
anonymous
  • anonymous
how is my set up wrong???
jim_thompson5910
  • jim_thompson5910
the table looks good. Is your book showing something else?

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More answers

anonymous
  • anonymous
no idea :P
ybarrap
  • ybarrap
Now just sum the final column to get your expected gain/loss.
misty1212
  • misty1212
HI!!
misty1212
  • misty1212
you want a simple way to do it?
anonymous
  • anonymous
yea I am adding it up but it is not right
misty1212
  • misty1212
buy all 100 tickets at $10 each how much did you spend?
anonymous
  • anonymous
1000?
misty1212
  • misty1212
yes of course how much money do you get back?
misty1212
  • misty1212
if that is not clear, i can explain, it is a very simple calculation
anonymous
  • anonymous
oh yea how would I calculate that?
misty1212
  • misty1212
one $480 prize two $75 prizes 5 $20 prizes
misty1212
  • misty1212
\[480+2\times 75+5\times 20=?\]
anonymous
  • anonymous
oh right right it is 730
misty1212
  • misty1212
you spent $1000 you get back $730 how much money did you lose?
anonymous
  • anonymous
270$
misty1212
  • misty1212
exactly averaged over the 100 tickets that is a loss of \(270\div 100=2.7\)
jim_thompson5910
  • jim_thompson5910
There are 4 tickets where you win $20, not 5 tickets
misty1212
  • misty1212
ahh so there are !
anonymous
  • anonymous
$-1.90??
misty1212
  • misty1212
that means you only get $710 back for a total loss of $290
misty1212
  • misty1212
averaged over the 100 tickets it is a loss of \(290\div 100=2.9\) so your expected value i s\(-\$2.9\) per ticket
anonymous
  • anonymous
$-2.90
misty1212
  • misty1212
right
anonymous
  • anonymous
thanks so much cool way to solve it but do you possibly know the mistake on my chart
misty1212
  • misty1212
let me look
anonymous
  • anonymous
ok thnx
misty1212
  • misty1212
ok i see why
misty1212
  • misty1212
when you win your prize of say $480 you have already spent $10 they do not refund your price of purchase, therefore your actual winnings are not $480 but rather $470
misty1212
  • misty1212
same with all the other numbers
misty1212
  • misty1212
i.e. when you win $75 it is a net gain of $65 and when you win $20 it is a net gain of $10
misty1212
  • misty1212
do it using your method but with the new numbers and you will get it
ybarrap
  • ybarrap
The probability that you spend 10 dollars on the ticket if you play is 1: |dw:1436674572521:dw| $$ E[{\bf{X}}]=-10+.01(480)+.02(75)+.04(20)=-2.90 $$ Where \({\bf X}\) is your expected gain/loss.

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