Question

s A lottery offers one 800 prize, one 700 Prize, two 800 prizes, and four prizes. One thousand tickets are sold at each. Find the expectation if a person buys two tickets. Assume that the player's ticket is replaced after each draw and that the same ticket can win more than one prize. Round to two decimal places for currency problems.

Answer 1

The question is incomplete. The complete question is :

A lottery offers one $800 prize, one $700 Prize, two $800 prizes, and four $100 prizes. One thousand tickets are sold at $5 each. Find the expectation if a person buys two tickets. Assume that the player's ticket is replaced after each draw and that the same ticket can win more than one prize. Round to two decimal places for currency problems.

The expected if a person buys two tickets is $__

Answer:

$ -1.52

Explanation:

Given :

A lottery offers --

One $800 prize

One $700 prize

Two $800 prize

Four $100 prizes

Let X = net win

X P(X)

795 1/1000

695 1/1000

795 2/1000

95 4/1000

-5 996/1000

`$E(X) = \sum X \ p(X)$`

`$=795 * (1)/(1000) + 695 * (1)/(1000) + 795 * (2)/(1000) + 95 * (4)/(1000) + (-5) * (996)/(1000)$`

= 0.795 + 0.695 + 1.59 + 0.38 - 4.98

= $ -1.52