In: Statistics and Probability
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?
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...