Suppose that a new state lottery game is developed with the following prizes and the number of tickets for each dollar prize:
Prize of Tickets
$0 88,120
$1 11,000
$5 500
$10 200
$20 100
$100 50
$500 20
$1000 10
The cost of a ticket is $1 and there are a total of 100,000 tickets available. Answer each of the following questions:
Question 1: What is the probability that an individual purchasing one ticket will win a prize of $1,000?
Question 2: What is the probability that an individual purchasing one ticket will win $5 or more?
Question 3: The actual return for purchasing one ticket must take into account the $1 spent to purchase the ticket. Keeping this in mind, what is the probability that purchasing one ticket will yield a return of $0?
Question 4: What is the expected return when an individual purchases one lottery ticket in this game?