Homework Help: Data Management

Posted by Madmazel on Monday, May 10, 2010 at 10:18pm.

A lottery has one $1000000 prize, two $50000 prizes, ten $1000 prizes, and two hundred $50 prizes. There are to be one milllion tickets sold. How much pofit does the lotto company make if they sell the tickets for $2.00 each?

Data Management - Bob, Friday, April 12, 2013 at 7:51pm
P(x) of 1000000 is 1/1000000
P(x) of 50000 prize is 2/1000000
P(x) of 1000 prize ia 10/1000000
P(x) of 50 prize is 200/1000000

P(x)=p

Find E(x) for each one

E(x)= n.p

Then add all E(x) values to find the expected value of all prizes for one ticket

Finally, that that total and multiply it by the cost of the ticket which is 2 dollars.

This will give you the expected profit

Thank You
Your Welcome!!!
Data Management - Bob, Friday, April 12, 2013 at 7:53pm
Oh also n is the total number of tickets which in this case is 1000000

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