Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

chegg 72. you buy a lottery ticket to a lottery that costs $10 per ticket. there are only 100 tickets available to be sold in this lottery. in this lottery there are one $500 prize, two $100 prizes, and four $25 prizes. find your expected gain or loss, using a constructed pdf and the expected value equation.

Sagot :

tutorconsortium104

The expected gain or loss exists estimated by (P(x) × n) then there exists a loss of $2.

What is meant by expected value?

When determining the mean of a probability distribution, we use expected value. The average value we anticipate to see prior to any data collection is represented by this. When attempting to determine the average value of a given sample, the mean is frequently utilized.

The probability of the 4 prizes which exists $500, $100, $25, and no prize.

P ($500 prize) = 1/100 or 0.01

P ($100 prize) = 2/100 or 0.02

P ($25 prize) = 4/100 or 0.04

P (No prize) = 100/100 – 1 + 2 + 4/100 = 93/100 = 0.93

Expected gain or loss exists estimated by: (P(x) × n)

substitute the values in the above equation, we get

E = (500-10) × 0.01 + (100-10) × 0.02 + (25-10) × 0.04 + (-10) × 0.93

simplifying the equation, we get

= 4.90 + 1.80 + 0.6 – 9.3

E = -2

There exists a loss of $2.

To learn more about expected value refer to:

brainly.com/question/24305645

#SPJ4

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.