A lottery has a grand prize of $160,000, two runner-up prizes of $20,000 each, eleven third-place prizes of $4000 each, and twenty-one consolation prizes of $800 each. of 800,000 tickets are sold for $1 each and the probability of any one ticket winning is the same as that of any other ticket winning, find the expected net winnings on a $1 ticket. (round your answer to two decimal places.)

Question

Desiree Abbott

Mathematics

1 June, 14:11

A lottery has a grand prize of $160,000, two runner-up prizes of $20,000 each, eleven third-place prizes of $4000 each, and twenty-one consolation prizes of $800 each. of 800,000 tickets are sold for $1 each and the probability of any one ticket winning is the same as that of any other ticket winning, find the expected net winnings on a $1 ticket. (round your answer to two decimal places.)

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Answers (1)

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Larry Lynn · Answer 1

The expected winning on an $1 ticket would be $0.326 or about 33 cents.

First, we need to find the total of all of the prize money:

1 (160000) + 2 (20000) + 11 (4000) + 21 (800) = 260800

Divide this total by the 800,000 tickets and you get 0.326.