Random variables and discrete probability distribution

Suppose that in order for a local high school, the school PTA decides to hold a charity lottery:

Enter the charity lottery

One grand price of $20,000

20 additional prizes of $500

Tickets only $10

After reading the fine print, you discover that 10,000 tickets will be sold. Therefore the probability of winning the grand prize is 1/10,000, while the probability of winning $500 is 20/10,000. Is this a good bet (answered this question using the expected value also find a standard deviation).

A) Set up the probability model for your expected and net winning or loss of a single play.

B) use MS excel to find the expected value and the standard deviation of your expected winnings.

Question

25 November, 21:20

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Answers (1)

Know the Answer?

Ibrahim Hayes · Answer 1

The answer would be A: Set up the probability model for your expected and net winning or loss of a single play.