Question

Compute the expected value of a Lotto Texas ticket: In cell E3, type "Prize" in bold In cell E4, type "$7500000" In cell E5, type "$1605" In cell E6, type "$36" In cell E7, type "$3" In cell E8, type "$0" In cell E9, type "$0" In cell E10, type "$0" In cell F3, type "Product" in bold In cell F4, enter the formula =D4*E4 Highlight cell F4, then fill down to the cell range F4:F10 In cell E11,

Answer 1

To calculate the expected value of a Lotto Texas ticket, multiply each prize amount by its respective probability of winning and then add up all the products. The expected value of a Lotto Texas ticket is $36.78.

Step-by-step explanation:

To calculate the expected value of a Lotto Texas ticket, we need to multiply each prize amount by its respective probability of winning and then add up all the products. In this case, the prizes and their probabilities are:

• Prize: $7500000, Probability: 0 (you can't win it)
• Prize: $1605, Probability: 0.969
• Prize: $36, Probability: 0.025
• Prize: $3, Probability: 0.005
• Prize: $0, Probability: 0.001
• Prize: $0, Probability: 0.001
• Prize: $0, Probability: 0.001

The expected value can be calculated as follows:

(0 * 0) + (1605 * 0.969) + (36 * 0.025) + (3 * 0.005) + (0 * 0.001) + (0 * 0.001) + (0 * 0.001) = $36.78

Therefore, the expected value of a Lotto Texas ticket is $36.78.