A lottery will be conducted for the benefit of the poor but deserving students at
a certain school. Four hundred tickets will be sold. One ticket will win P2000
and the other tickets will win nothing. If you buy one ticket, what will be your
expected value and variance of your gain.
a certain school. Four hundred tickets will be sold. One ticket will win P2000
and the other tickets will win nothing. If you buy one ticket, what will be your
expected value and variance of your gain.
Add an Answer
More Questions From This User See All
Answers & Comments
Answer:
Would you buy a lottery ticket with the numbers 1, 2, 3, 4, 5? Do you think that a winning ticket with five consecutive numbers is less likely than a winning ticket with the numbers 2, 14, 18, 23 and 32? If you are playing a slot machine in Las Vegas and you have lost the last 10 times, do you keep playing the same machine because you are “due for a win?” Have you ever wondered how a casino can afford to offer meals and rooms at such cheap rates? Should you play a game of chance at a carnival? How much should an organization charge for raffle tickets for their next fund raiser? All of these questions can be answered using probabilities.
Definition: Expected Value
Suppose the random variable x can take on the n values x1,x2,x3,…,xn . If the probability that each of these values occurs is p1,p2,p3,…,pn , respectively, then the expected value of the random variable is
E(x)=x1p1+x2p2+x3p3+…+xnpn(3.4.1)
Step-by-step explanation: