Statistics question please

label Mathematics
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

May 16th, 2015

So I cant really make a good table with my tools but I can give you the values. The probability of loss of $5 is 2996/3000, while the other prizes each have a probability of 1/3000. Remember to account for the cost of the ticket in the prize return, which would make the prize returns 1495, 995, 495, and 95. So the expected value would be 1495 x (1/3000) + 995 x (1/3000) + 495 x (1/3000) + 95 x (1/3000) - 5 x (2996/3000) = about - $3.97. I would definitely not buy the ticket because the expected value is well into the negative. Hope this helps

May 16th, 2015

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May 16th, 2015
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May 16th, 2015
Jun 28th, 2017
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