Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the one winning
ticket is to be $500, what are your expected winnings?
prob of winning = 1/3000
so expected winning = $500(1/3000)
= $.17
ticket is to be $500, what are your expected winnings?
so expected winning = $500(1/3000)
= $.17