What are expected winnings from the lottery


Four possibly winning numbers for a lottery-AB-4536, NH-7812, SQ-7855, and ZY-3221- arrive in the mail. You will win a prize if one of your numbers matches one of the winning numbers contained on a list held by those conducting the lottery. One first prize of $100,000m two second prizes of $50,000 each, and ten third prizes of $1000 each will be awarded. To be eligible to win, you need to mail the coupon back to the company at a cost of 33 cents for postage. No purchase is required. From the structure of the numbers that you received it is obvious the numbers sent out consist of two letters followed by four digits. Assuming that the numbers you received were generated at random, what are your expected winnings from the lottery? Is it worth 33 cents to enter this lottery?

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