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) Does the size of the grand prize affect your chance of winning? Explain. OA. No, because the expected profit is always $0 no matter what the grand prize is. OB. No, because your chance of winning is determined by the properties of the lotter OC. Yes, because your expected profit increases as the grand prize increases.

) Does the size of the grand prize affect your chance of winning? Explain. OA. No, because the expected profit is always $0 no matter what the grand prize is. OB. No, because your chance of winning is determined by the properties of the lotter OC. Yes, because your expected profit increases as the grand prize increases.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Please help answer (c) on my practice homework

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For a multistate lottery, this probability distribution shows the cash prizes with their corresponding probabilities: | Cash prize ($) | Probability (P(x)) | |-------------------|----------------------| | Grand prize | 0.0000000576 | | 200,000 | 0.00000025 | | 10,000 | 0.00001605 | | 100 | 0.000146059 | | 7 | 0.0003645779 | | 4 | 0.006812266 | | 3 | 0.01694146 | | 0 | 0.97245257524 | Tasks: (a) **Expected Cash Prize Calculation** If the grand prize is $15,000,000, find and interpret the expected cash prize. A ticket costs $1. - **Expected Cash Prize:** $0.27 (rounded to the nearest cent) **Interpretation:** - Correct answer: B. On average, you will win $0.27 per lottery ticket. **Expected Profit from $1 ticket:** $-0.73 (b) **Grand Prize for Expected Profit** To the nearest million, the grand prize must be $14,200,000 to expect a profit. (c) **Effect of Grand Prize Size on Winning Chance** - Correct answer: B. The chance of winning is determined by the properties of the lottery, not the payouts.
Transcribed Image Text:For a multistate lottery, this probability distribution shows the cash prizes with their corresponding probabilities: | Cash prize ($) | Probability (P(x)) | |-------------------|----------------------| | Grand prize | 0.0000000576 | | 200,000 | 0.00000025 | | 10,000 | 0.00001605 | | 100 | 0.000146059 | | 7 | 0.0003645779 | | 4 | 0.006812266 | | 3 | 0.01694146 | | 0 | 0.97245257524 | Tasks: (a) **Expected Cash Prize Calculation** If the grand prize is $15,000,000, find and interpret the expected cash prize. A ticket costs $1. - **Expected Cash Prize:** $0.27 (rounded to the nearest cent) **Interpretation:** - Correct answer: B. On average, you will win $0.27 per lottery ticket. **Expected Profit from $1 ticket:** $-0.73 (b) **Grand Prize for Expected Profit** To the nearest million, the grand prize must be $14,200,000 to expect a profit. (c) **Effect of Grand Prize Size on Winning Chance** - Correct answer: B. The chance of winning is determined by the properties of the lottery, not the payouts.
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