What are expected net winnings in a lottery


If a person buys ten tickets at $1 each in a lottery in which1,000 tickets are sold and the prize is $500, what are his expectednet winnings? 

The Expected value of each ticket:

E = (m)(p)

E = ($500)(1/1000) = $0.5

Solution Preview :

Prepared by a verified Expert
Finance Basics: What are expected net winnings in a lottery
Reference No:- TGS0676779

Now Priced at $5 (50% Discount)

Recommended (97%)

Rated (4.9/5)