Compute the expected return if two mega lottery tickets are sold for $6, if the winning ticket is drawn from five (5) million tickets sold, and if the winner receives $10 million.

To compute the expected return in this scenario, you need to calculate the probability of winning and the amount you will receive if you win.

Step 1: Calculate the probability of winning.
Since there are 5 million tickets sold and only one winning ticket, the probability of winning is 1 in 5 million. This can be expressed as 1/5,000,000.

Step 2: Calculate the amount you will receive if you win.
The amount you will receive if you win is $10 million.

Step 3: Calculate the expected return.
To calculate the expected return, multiply the probability of winning by the amount you will receive if you win:
Expected Return = (Probability of winning) × (Amount received if you win)
Expected Return = (1/5,000,000) × ($10,000,000)
Expected Return ≈ $2

Therefore, the expected return if two mega lottery tickets are sold for $6 is approximately $2.