1. In a state lottery à five-digit integer is selected at random. If a player bets 1 dollar on a particular number, the payoff (if that number is selected) is $500 minus the $1 paid for the ticket....

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1. In a state lottery à five-digit integer is selected at random. If a player bets 1 dollar on a particular number, the payoff (if that number is selected) is $500 minus the $1 paid for the ticket. Let X equal the payoff to the better. Find the expected value of x.
Answered 86 days AfterNov 14, 2021

Answer To: 1. In a state lottery à five-digit integer is selected at random. If a player bets 1 dollar on a...

Nithin answered on Feb 09 2022
112 Votes
Answer :
The probability of winning is 1/99999 and that payoff is (500-1)/99999 or 0.00499.
The probability of losing is 99998/99999 and that loss is that fraction or -0.99999 which really rounds to 1.00
so the expected value is - 1-0.00499 or -$0.99501 or -$0.995.
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