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 1 year ago
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