Question

A state offers two lottery games, WinOne and PlayBall. Both games cost $2 per ticket.

In WinOne, the player picks a single letter from A to J and a single digit from 0 to 9. If both the letter and the digit match the letter and the digit picked on that day, the player wins $150.


In PlayBall, the player picks a single letter from A to T and a single digit from 0 to 9. If both the letter and the digit match the letter and the digit picked on that day, the player wins $280. If the prize for WinOne were increased to $200 for matching both the letter and the digit, what would the expected value be? -


$0.80

-$0.65

$0

$0.80

Answer 1

The answer is $0.

Explanation:

Answer 2

In this question, both tickets cost 2$ per ticket.
The answer to this question would be: $0

In WinOne scenario, you need to match a ticket that has to pick from A-J(10 possibilities) and 0-9 (10 possibilities). The chance to win would be: 1/10* 1/10= 1/100

The expected value must be:
E= chance to win * win amount - ticket price
E= 1//100*$200 - $2= $2-$2= 0