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Determine the expected value in a simple probability situation involving theoretical probability a lottery has a $1 000 000 first prize, a $25 000 second prize, and five $1 000 third prizes. A total of 2 000 000 tickets are sold. Calculate the expected winnings.

User BdEngineer
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24 votes
24 votes

Determine the expected value in a simple probability situation involving theoretical probability a lottery has a $1 000 000 first prize, a $25 000 second prize, and five $1 000 third prizes. A total of 2 000 000 tickets are sold. Calculate the expected winnings

we have that

expected winnings=7/2,000,000=0.00035%

because

there are 7 prizes (first, second and five third prizes) and a total of 2,000,000 tickets

User Brandon Satrom
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