in a lottery, 10,000 tickets are sold at $1 each with a prize of $70,000 for...

Question

Question

in a lottery, 10,000 tickets are sold at $1 each with a prize of $70,000 for one winner. what is the expected value for each bettor?

math Statistics-And-Probability

Answer 1

Answer #1

Total tickets (n) = 10,000

Selling Price = 1$

Prize = 70,000 $ for 1 winner

EV = Price/Total tickets -Cost/ticket

=70,000/10,000 -1

=7-1

=6$

So the expected value for each bettor=6$

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Answer 2

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