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LUCKY FOR LIFE ODDS & PRIZES MATCH THESE BALLS ●●●●● ●●●● AND YOU HAVE WON $1,000 a day, FOR LIFE $25,000 a year, FOR LIFE $5,000 $200 $150 $20 $25 $3 56 OODS 1 in 30.821,472 1 in 1,813.028 1 in 143.356 1 in 8,433 1 in 3,413 1 in 201 1 in 250 1 in 15 1 in 50 1 in 32

LUCKY FOR LIFE ODDS & PRIZES MATCH THESE BALLS ●●●●● ●●●● AND YOU HAVE WON $1,000 a day, FOR LIFE $25,000 a year, FOR LIFE $5,000 $200 $150 $20 $25 $3 56 OODS 1 in 30.821,472 1 in 1,813.028 1 in 143.356 1 in 8,433 1 in 3,413 1 in 201 1 in 250 1 in 15 1 in 50 1 in 32

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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Lucky4life lottery. 2 dollar each ticket. Expected value formula.The formula (prize 1*probability of prize 1) + (prize 2 * probability of prize 2) +.....

 

**Lucky for Life Odds & Prizes** *Match These Balls:* - 5 green + 1 yellow: $1,000 a day, FOR LIFE* (Odds: 1 in 30,821,472) - 5 green: $25,000 a year, FOR LIFE* (Odds: 1 in 1,813,028) - 4 green + 1 yellow: $5,000* (Odds: 1 in 143,356) - 4 green: $200 (Odds: 1 in 8,433) - 3 green + 1 yellow: $150 (Odds: 1 in 3,413) - 3 green: $20 (Odds: 1 in 201) - 2 green + 1 yellow: $25 (Odds: 1 in 250) - 2 green: $3 (Odds: 1 in 15) - 1 green + 1 yellow: $6 (Odds: 1 in 50) - 1 yellow: $4 (Odds: 1 in 32) *What if you don’t want the option* **Lucky for Life Prize Options** *The minimum payment period for the top and second prizes is 20 years. Both have the choice of a Cash Option as an alternative.* - **Top Prize:** - *Winners:* - 1: Annuitized Payment Option: $1,000 a day for life - Cash Option: $5,750,000.00 - 2-14: Annuitized Payment Option: $1,000 a day for life* - Cash Option: $5,750,000.00* - 15 or more: No annuitized payment option - Cash Option: $7,125,000.00* - **Second Prize:** - *Winners:* - 1-20: Annuitized Payment Option: $25,000 a year for life - Cash Option: $390,000.00 - 21 or more: No annuitized payment option - Cash Option: $9,400,000.00* *Divided by the number of winners.
Transcribed Image Text:**Lucky for Life Odds & Prizes** *Match These Balls:* - 5 green + 1 yellow: $1,000 a day, FOR LIFE* (Odds: 1 in 30,821,472) - 5 green: $25,000 a year, FOR LIFE* (Odds: 1 in 1,813,028) - 4 green + 1 yellow: $5,000* (Odds: 1 in 143,356) - 4 green: $200 (Odds: 1 in 8,433) - 3 green + 1 yellow: $150 (Odds: 1 in 3,413) - 3 green: $20 (Odds: 1 in 201) - 2 green + 1 yellow: $25 (Odds: 1 in 250) - 2 green: $3 (Odds: 1 in 15) - 1 green + 1 yellow: $6 (Odds: 1 in 50) - 1 yellow: $4 (Odds: 1 in 32) *What if you don’t want the option* **Lucky for Life Prize Options** *The minimum payment period for the top and second prizes is 20 years. Both have the choice of a Cash Option as an alternative.* - **Top Prize:** - *Winners:* - 1: Annuitized Payment Option: $1,000 a day for life - Cash Option: $5,750,000.00 - 2-14: Annuitized Payment Option: $1,000 a day for life* - Cash Option: $5,750,000.00* - 15 or more: No annuitized payment option - Cash Option: $7,125,000.00* - **Second Prize:** - *Winners:* - 1-20: Annuitized Payment Option: $25,000 a year for life - Cash Option: $390,000.00 - 21 or more: No annuitized payment option - Cash Option: $9,400,000.00* *Divided by the number of winners.
**Option C: Cash4Life, Lucky4Life or Similar (Groups of 2):** 1. Find the expected value without the lifetime prizes considered. 2. Find the expected value assuming the cash option will be selected rather than the annuity. 3. Find the expected value if the annuity will be paid for 20 years. (Minimum the lottery will pay out) 4. Find the expected value if the annuity will be paid for 50 years. 5. If none of the above values make buying a ticket "worth it," how long would you have to receive the annuity for the ticket to be "worth it"? For each of the above, make sure to answer the question: is it "worth it" to buy tickets?
Transcribed Image Text:**Option C: Cash4Life, Lucky4Life or Similar (Groups of 2):** 1. Find the expected value without the lifetime prizes considered. 2. Find the expected value assuming the cash option will be selected rather than the annuity. 3. Find the expected value if the annuity will be paid for 20 years. (Minimum the lottery will pay out) 4. Find the expected value if the annuity will be paid for 50 years. 5. If none of the above values make buying a ticket "worth it," how long would you have to receive the annuity for the ticket to be "worth it"? For each of the above, make sure to answer the question: is it "worth it" to buy tickets?
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