Question

Suppose your state lottery has an expected value of

−34%.
If you spend $40 per month on lottery tickets, how much money would you be expected to lose in an average year?
We can expect to lose $
.

Answer 1

With an expected value of −34% for the state lottery and monthly spending of $40 on tickets, a person can expect to lose $13.60 monthly or $163.20 annually.

Step-by-step explanation:

If the expected value of playing the state lottery is −34%, and a person spends $40 per month on lottery tickets, we can calculate the expected annual loss as follows:

Firstly, an expected value of −34% means that on average, for every dollar spent, you would expect to lose 34 cents. So for $40 spent in one month, the expected loss would be 34% of $40, which equals $13.60.

Next, we can find the expected loss for a year by multiplying the monthly loss by the number of months in a year:

1. Monthly expected loss: 0.34 × $40 = $13.60
2. Annual expected loss: $13.60 × 12 months = $163.20

Therefore, on average, you can expect to lose $163.20 per year if you continue spending $40 on lottery tickets every month.

Answer 2

$163.20

Step-by-step explanation:

Your state lottery has an expected value of −34%.

You spend $40 per month on lottery tickets. So, you can expect to lose 34% of the amount you spend.

Find 34% of $40:

`\$40\cdot 0.34=\$13.60`

Hence, we can expect to lose $13.60 per month.

A year (12 months period) expected lose is

`\$13.60\cdot 12=\$163.20`