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A magazine ran a sweepstakes in which prizes were listed along with the chances of winning: $1,000,000 (1 chance in 80,000,000), $100,000 (1 chance in 130,000,000), $25,000 (1 chance in 130,000,000), $5,000 (1 chance in 35,667,000), and $2,500 (1 chance in 27,500,000). Complete a and b. a. Assuming that there is no cost to enter the sweepstakes, find the expected value of the amount won for one entry. |¢ (Round to the nearest tenth as needed.) b. Find the expected value if the cost of entering this sweepstakes is the cost of a postage stamp (3¢). e (Round to the nearest tenth as needed.) Is it worth entering this contest? O A. No. It is not worth entering this contest because the new expected value is negative. O B. Yes. It is worth entering this contest because the new expected value is negative. O C. No. It is not worth entering this contest because the new expected value is positive. O D. Yes. It is worth entering this contest because the new expected value is positive.

A magazine ran a sweepstakes in which prizes were listed along with the chances of winning: $1,000,000 (1 chance in 80,000,000), $100,000 (1 chance in 130,000,000), $25,000 (1 chance in 130,000,000), $5,000 (1 chance in 35,667,000), and $2,500 (1 chance in 27,500,000). Complete a and b. a. Assuming that there is no cost to enter the sweepstakes, find the expected value of the amount won for one entry. |¢ (Round to the nearest tenth as needed.) b. Find the expected value if the cost of entering this sweepstakes is the cost of a postage stamp (3¢). e (Round to the nearest tenth as needed.) Is it worth entering this contest? O A. No. It is not worth entering this contest because the new expected value is negative. O B. Yes. It is worth entering this contest because the new expected value is negative. O C. No. It is not worth entering this contest because the new expected value is positive. O D. Yes. It is worth entering this contest because the new expected value is positive.

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.CR: Chapter Review
Problem 76E
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A magazine ran a sweepstakes in which prizes were listed along with the chances of winning: $1,000,000 (1 chance in 80,000,000), $100,000 (1 chance in 130,000,000), S25,000 (1 chance in 130,000,000), $5,000 (1 chance in 35,667.000), and $2,500 (1 chance in 27,500,000). Complete a and b. a. Assuming that there is no cost to enter the sweepstakes, find the expected value of the amount won for one entry. ¢ (Round to the nearest tenth as needed.) b. Find the expected value if the cost of entering this sweepstakes is the cost of a postage stamp (3¢). |(Round to the nearest tenth as needed) Is it worth entering this contest? O A. No. It is not worth entering this contest because the new expected value is negative. O B. Yes. It is worth entering this contest because the new expected value is negative. O C. No. It is not worth entering this contest because the new expected value is positive. O D. Yes. It is worth entering this contest because the new expected value is positive.
Transcribed Image Text:A magazine ran a sweepstakes in which prizes were listed along with the chances of winning: $1,000,000 (1 chance in 80,000,000), $100,000 (1 chance in 130,000,000), S25,000 (1 chance in 130,000,000), $5,000 (1 chance in 35,667.000), and $2,500 (1 chance in 27,500,000). Complete a and b. a. Assuming that there is no cost to enter the sweepstakes, find the expected value of the amount won for one entry. ¢ (Round to the nearest tenth as needed.) b. Find the expected value if the cost of entering this sweepstakes is the cost of a postage stamp (3¢). |(Round to the nearest tenth as needed) Is it worth entering this contest? O A. No. It is not worth entering this contest because the new expected value is negative. O B. Yes. It is worth entering this contest because the new expected value is negative. O C. No. It is not worth entering this contest because the new expected value is positive. O D. Yes. It is worth entering this contest because the new expected value is positive.
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