Calculate the expectation (to the nearest cent) for the Reader's Digest sweepstakes described below. Assume there are 197,000,000 entries.
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To calculate the expectation for the Reader's Digest sweepstakes, we need to know the probability of winning and the prize amount. Unfortunately, the question does not provide this information, so we cannot determine the exact expectation.
However, if we make an assumption about the probability of winning and the prize amount, we can calculate an estimated expectation.
Let's assume that the probability of winning is 1 in 10,000 (0.0001) and the prize amount is $1,000,000.
To calculate the estimated expectation, we multiply the probability of winning by the prize amount and subtract the cost of entering the sweepstakes:
Estimated Expectation = (Probability of Winning) × (Prize Amount) - (Cost of Entering)
Given that there are 197,000,000 entries, the cost of entering is presumably $0 because most sweepstakes are offered for free.
Estimated Expectation = (0.0001) × ($1,000,000) - $0 = $100
Therefore, the estimated expectation for this Reader's Digest sweepstakes is $100. Please note that this is an estimated expectation, and the actual expectation may vary depending on the actual probability of winning and the prize amount.