California residents received coupons for free lotto tickets. In order to win the jackpot, you have to correctly guess all 6 numbers drawn from a pool of 36. What is the expected value of the free Lotto ticket if the jackpot is $8,000,000 and there is no splitting the prize?
The number of 6-number choices from 36 is
C(36,6) = 1947792
of course, only one of these will be the correct one
Prob of winning choice = 1/1947792
expected value = (1/1947792)(8000000) = appr 4.107