Homework Help: math

Posted by Tina on Monday, February 11, 2013 at 11:38pm.

A certain sweepstakes ticket has four categories of prizes with the following probabilities of being won:

Prize

Probability

$100,000

1/500,000

$50,000

1/250,000

$20,000

1/200,000

$10,000

1/100,000

If each ticket costs $1.00, what is the expected gain or loss?
Select one:
a. $.60
b. $6.00
c. $4.00
d. $.40

math - JJ, Thursday, February 14, 2013 at 5:13pm
Multiply each possible prize times the chance of winning and add them all up. compare that number with $1 to find your expected gain or loss. If the number is larger, you have a gain. If the number is smaller, you have a loss.

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