expected return on

Suppose you play a game of chance in which five numbers are chosen from 0, 1, 2, 3, 4, 5, 6, 7, 8, 9. A computer randomly selects five numbers from zero to nine with replacement. You pay $2 to play and could profit $100,000 if you match all five numbers in order (you get your $2 back plus $100,000). Over the long term, what is your expected profit of playing the game? Can give at least an explanation? I don't really get this one.

Suppose you won the lottery and had two options: (1) receiving $0.8 million or (2) taking a gamble in which, at the flip of a coin, you receive $1.6 million if a head comes up but receive zero if a tail comes up. What is the expected value of the gamble? Enter your answer in millions. For example, an answer of $500,000 should be entered as 0.5. Round your answer to one decimal place. $   million Would you take the sure $0.8 million or the gamble?   If you chose the sure $0.8 million, would that indicate that you are a risk averter or a risk seeker?   Suppose the payoff was actually $0.8 million - that was the only choice. You now face the choice of investing it in a U.S. Treasury bond that will return $856,000 at the end of a year or a common stock that has a 50-50 chance of being worthless or worth $1,920,000 at the end of the year. The expected profit on the T-bond investment is $56,000. What is the expected dollar profit on the stock investment? Round your answer to the nearest…

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A game of chance offers the following odds and payoffs. Each play of the game costs $200, so the net profit per play is the payoff less $200. Probability Payoff Net Profit 0.30 $400 $200 0.60 300 100 0.10 0 –200 1. What is the expected cash payoff? Note: Round your answer to the nearest whole dollar amount. 2. What is the expected rate of return? Note: Enter your answer as a percent rounded to the nearest whole number. 1.What is the variance of the expected returns? Note: In the calculation, use the percentage values, not the decimal values for the rates of return. Do not round intermediate calculations. Round your answer to the nearest whole number. 2.hat is the standard deviation of the expected returns? Note: Enter your answer as a percent rounded to 2 decimal places.

Find the expected payback for a game in which you bet ​$88 on any number from 0 to 499. If your number comes​ up, you get ​$1000.

You draw and keep a single bill from a hat that contains a $1.$10, S20 and $100 bill. What is the expected value of the game to you? The expected value of the game to you is dollars. (Type an integer or a decimal.)

So, what could be better than winning a SuperLotto Plus jackpot? Choosing how to receive your winnings! Before playing a SuperLotto Plus jackpot, you have a choice between getting the entire jackpot in 26 annual graduated payments or receiving one lump sum that will be less than the announced jackpot. (See Figure 2.29.) What would these choices come out to for an announced jackpot of $7 million?• Lump-sum cash-value option: The winner would receive the present cash value of the announced jackpot in one lump sum. In this case, the winner would receive about 49.43%, or $3.46 million, in one lump sum (less tax withholdings).This cash value is based on average market costs determined by U.S. Treasury zero-coupon bonds with 5.3383% annual yield.• Annual-payments option: The winner would receive the jackpot in 26 graduated annual payments. In this case, the winner would receive $175,000 as the first payment (2.5% of the total jackpot amount) immediately. The second payment would be $189,000.…