Question
In: Statistics and Probability
For a multistate lottery, the following probability distribution represents the cash prizes of the lottery with...
For a multistate lottery, the following probability distribution represents the cash prizes of the lottery with their corresponding probabilities. Complete parts (a) through (c) below. x (cash prize, $) P(x) 14,000,000 0.00000000547 200,000 0.00000032 10,000 0.000001604 100 0.000165836 7 0.004321645 4 0.008019353 3 0.01545068 0 0.97204055653 If the grand prize is $14,000,000, find and interpret the expected cash prize. If a ticket costs $1, what is your expected profit from one ticket?
x (cash prize, $) P(x)
14,000,000 0.00000000547
200,000 0.00000032
10,000 0.000001604
100 0.000165836
7 0.004321645
4 0.008019353
3 0.01545068
0 0.97204055653
If the grand prize is
$14,000,000,
find and interpret the expected cash prize. If a ticket costs $1, what is your expected profit from one ticket?
Solutions
Expert Solution
Let X denotes the cash prize of the lottery. The expected cash prize is E[X] and expected profit from one ticket of $1 is E[X]-1.The detail solution is given in the images...
orchestra answered 2 years agoRelated Solutions
For a multistate? lottery, the following probability distribution represents the cash prizes of the lottery with...
For a multistate? lottery, the following probability
distribution represents the cash prizes of the lottery with their
corresponding probabilities. Complete parts? (a) through? (c)
below.
x? (cash prize,? $)
?P(x)
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Grand prizeGrand prize
0.000000008390.00000000839
?200,000
0.000000360.00000036
?10,000
0.0000018710.000001871
100
0.0001479450.000147945
7
0.0054037740.005403774
4
0.0064119730.006411973
3
0.011546880.01154688
0
0.976487188610.97648718861
?(a) If the grand prize is
?$12 comma 000 comma 00012,000,000?,
find and interpret the expected cash prize. If a ticket costs?
$1, what...
One state lottery has 1,100 prizes of $1; 135 prizes of $10; 15 prizes of $50;...
One state lottery has 1,100 prizes of $1; 135 prizes of $10; 15
prizes of $50; 5 prizes of $310; 2 prizes of $1,150; and 1 prize of
$2,500. Assume that 22,0000 lottery tickets are issued and sold for
$1. Round final answer to four decimals.
1. What is the lottery's expected profit per ticket?
2. What is the lottery's standard deviation of profit per
ticket?
One state lottery has 1,100 prizes of $1; 120 prizes of $10; 30 prizes of $50;...
One state lottery has 1,100 prizes of $1; 120 prizes of $10;
30 prizes of $50; 5 prizes of $285; 2 prizes of $1,180; and 1 prize
of $2,400. Assume that 34,000 lottery tickets are issued and sold
for $1. Round to 4 decimal places for the answers
What is the lottery's expected profit per ticket?
What is the lottery's standard deviation of profit per
ticket?
One state lottery has 1,000 prizes of $1; 130 prizes of $10; 20 prizes of $55;...
One state lottery has 1,000 prizes of $1; 130 prizes of $10; 20
prizes of $55; 5 prizes of $300; 2 prizes of $1,010; and 1 prize of
$2,500. Assume that 31,000 lottery tickets are issued and sold
$1
What is the lottery's expected profit per ticket?
What is the lottery's standard deviation of profit per
ticket?
The following data set provides information on the lottery sales, proceeds, and prizes by year in...
The following data set provides information on the lottery
sales, proceeds, and prizes by year in Iowa.
FYI
Sales
Proceeds
Prizes
1986
$85,031,584
$27,631,613
$39,269,612
1987
$98,292,366
$31,157,797
$47,255,945
1988
$128,948,560
$40,090,157
$65,820,798
1989
$172,488,594
$49,183,227
$92,563,898
1990
$168,346,888
$50,535,644
$90,818,207
1991
$158,081,953
$44,053,446
$86,382,329
1992
$166,311,122
$45,678,558
$92,939,035
1993
$207,192,724
$56,092,638
$116,820,274
1994
$206,941,796
$56,654,308
$116,502,450
1995
$207,648,303
$58,159,175
$112,563,375
1996
$190,004,182
$51,337,907
$102,820,278
1997
$173,655,030
$43,282,909
$96,897,120
1998
$173,876,206
$42,947,928
$96,374,445
1999
$184,065,581
$45,782,809
$101,981,094
2000
$178,205,366
$44,769,519...
As a winner of a lottery you can choose one of the following prizes: 1) £1...
As a winner of a lottery you can choose one of the following
prizes:
1) £1 million now.
2) £1.5 million at the end of six years.
3) £80,000 a year forever, starting in one year.
4) £150,000 for each of the next ten years, starting in one
year.
If the discount rate is 8 per cent, which is the most valuable
prize?
The following data set provides information on the lottery sales, proceeds, and prizes by year in...
The following data set provides information on the lottery
sales, proceeds, and prizes by year in Iowa.
FY
Sales
Proceeds
Prizes
1992
$166,311,122
$45,678,558
$92,939,035
1993
$207,192,724
$56,092,638
$116,820,274
1994
$206,941,796
$56,654,308
$116,502,450
1995
$207,648,303
$58,159,175
$112,563,375
1996
$190,004,182
$51,337,907
$102,820,278
1997
$173,655,030
$43,282,909
$96,897,120
1998
$173,876,206
$42,947,928
$96,374,445
1999
$184,065,581
$45,782,809
$101,981,094
2000
$178,205,366
$44,769,519
$98,392,253
2001
$174,943,317
$44,250,798
$96,712,105
2002
$181,305,805
$48,165,186
$99,996,233
HelpCopy to ClipboardDownload CSV
Create a graph using the sales and year. What approximate range...
The following data set provides information on the lottery sales, proceeds, and prizes by year in...
The following data set provides information on the lottery
sales, proceeds, and prizes by year in Iowa.
FY
Sales
Proceeds
Prizes
1992
$166,311,122
$45,678,558
$92,939,035
1993
$207,192,724
$56,092,638
$116,820,274
1994
$206,941,796
$56,654,308
$116,502,450
1995
$207,648,303
$58,159,175
$112,563,375
1996
$190,004,182
$51,337,907
$102,820,278
1997
$173,655,030
$43,282,909
$96,897,120
1998
$173,876,206
$42,947,928
$96,374,445
1999
$184,065,581
$45,782,809
$101,981,094
2000
$178,205,366
$44,769,519
$98,392,253
2001
$174,943,317
$44,250,798
$96,712,105
2002
$181,305,805
$48,165,186
$99,996,233
HelpCopy to ClipboardDownload CSV
Create a graph using the sales and year. What approximate range...
1. The following probability distribution represents the number of people living in a Household (X), and...
1. The following probability distribution represents the number
of people living in a Household (X), and the probability of
occurrence (P(X)). Compute the Expected Value (mean), the Variance
and the Standard Deviation for this random variable. Show Your
Calculations for the Mean.
X
1
2
3
4
5
P(X) .33 .29
.27
.07 .04
2. Use the binomial formula to compute the probability of a
student getting 8 correct answers on a 10...
The following represents the probability distribution of future returns for stock A and stock B. State...
The following represents the probability distribution of future
returns for stock A and stock B. State of Economy Probability
Return on Security A Return on Security B Boom 0.20 18% 4% Normal
0.60 8% 8% Recession 0.20 −4% 12%
a. What is the expected return for Security A and Security
B?
b. What is the expected return on a portfolio consisting of 50%
investment in Security A and 50% in security B?
c. What is the standard deviation of a...
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