186k views
5 votes
200 lottery tickets are sold for $5 each. The person with the single winning ticket will get $62. What is the expected value for a ticket in this lottery?

User Fasmat
by
5.6k points

1 Answer

6 votes
Answer:

His expected value is 0.057

Step-by-step explanation:

Given that there are 200 lottery tickets sold for $5 each, the total amount on ticket is:

200 * $5 = $1000

Since $62 is for the winner, subtracting the amount bet, we have ($62 - $5 = $57)

His chance of losing is 999/1000

His chance of winning is 1/1000

The expected earning for a ticket is:

57/1000 = 0.057

User Jason Mitchell
by
6.3k points