Posted by saleema on .
suppose a lottery game allows you to select a 2-digit number. Each digit may be either 1,2,3,4,5. if you pick the winning number you win $10 otherwise you win nothing A)what is the probability that you will pick the winning number B) the notation E(payoff)means the expected (or average)payoff. What is E(payoff) C)if the lottery tickets cost $1 how much should you expect to loose on the average per play
number of possible 2 digit numbers is
5x4 or 20
So the prob of a win is 1/20
E($10) = (1/20)(10) = .50 or 50 cents
So you would expect to lose 50 cents (or win 50 cents) on each $1 play.