Question

In the New York State Numbers Lottery, you pay $1 and can bet that the sum of the numbers that come up is 13. The probability of winning is 0.075, and if you win, you win $6.50, which is a profit of $5.50. What is the expected value of your profit?

Answer 1

The answer is 0.4125

Explanation:

Expected value of a profit is calculated by multiplying the probability of the profit happening and the amount of the profit. In this case, the probability of the profit happening is 0.075 which is 0.075% and the profit is $5.50, so the expected value of the profit is 0.075 x 5.50 = 0.4125.

I hope this answer helps.