# Probability

A contest entrant has a .00001 probability of winning \$5,000.00. If this is only prize and the entry fee is \$20.00, then what is the expected value?

Regardless of what you pay for an entry "ticket" its expected value is in this case
(probability of winning) x (prize money) = 10^-5 x \$5,000 = \$0.50

Not a very good bet, if you pay \$20 for it

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asked by Sue

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