Posted by Kim on .
A lottery ticket has a grand prize of $28 million. The probability of winning the grand prize is .000000023. Based on the expected value of the lottery ticket, would you pay $1 for a ticket? Show your calculations and reasoning clearly.

statistic 
Reiny,
the expected return is
28 million x .000000023 = 0.64
no, I would pay 64 cents.