Suppose Sam bought 1 ticket of CA SupperLotto. The details of how to play and how...

Suppose Sam bought 1 ticket of CA SupperLotto. The details of how to play and how to win is listed in the two tables below.

Let’s use X to denote the net gain from 1 ticket.

Net gain is defined by Net Gain = Prize (if any) – Cost

Find the expected value of X.

How to Play

Pick 5 different numbers between 1 and 47

Pick 1 Mega numbers between 1 and 27

Cost per ticket $1

Matched Numbers	Prize
5+ Mega	$20,000,000
5	$28,677.00
4+Mega	$1,433.00
4	$97.00
3+Mega	$57.00
3	$10.00
2+Mega	$11.00
1+Mega	$2.00
Mega	$1.00

Expert Solution

orchestra answered 2 years ago

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