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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 made 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?

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 made 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?

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 tickets are 2 dollars.Use the Expected value formula. The mean of a discreate probability distrubution.

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 made 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 made 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?
LUCKY FOR LIFE ODDS & PRIZES Winners 1 2-14 MATCH THESE BALLS 15 or more SECOND PRIZE Winners 1-20 + 21 or more "Divided by the number of winners Annuitized Payment Option AND YOU HAVE WON $1,000 a day for life $1,000 a day for life (No annuitized payment option) $1,000 a day, FOR LIFE" Annuitized Payment Option $25,000 a year for life (No annuitized payment option) $25,000 a year, FOR LIFE $5,000 $200 $150 $20 $25 $3 56 $4 What if you don't want the option) OODS 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 to th as described in the table below. Prizes that are governed by "split-prize" liability are divided equally among the winning tickets and ma TOP PRIZE 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 Cash Option $5,750,000.00 $5,750,000.00* $7,125,000.00* Cash Option $390,000.00 $9,400,000.00*
Transcribed Image Text:LUCKY FOR LIFE ODDS & PRIZES Winners 1 2-14 MATCH THESE BALLS 15 or more SECOND PRIZE Winners 1-20 + 21 or more "Divided by the number of winners Annuitized Payment Option AND YOU HAVE WON $1,000 a day for life $1,000 a day for life (No annuitized payment option) $1,000 a day, FOR LIFE" Annuitized Payment Option $25,000 a year for life (No annuitized payment option) $25,000 a year, FOR LIFE $5,000 $200 $150 $20 $25 $3 56 $4 What if you don't want the option) OODS 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 to th as described in the table below. Prizes that are governed by "split-prize" liability are divided equally among the winning tickets and ma TOP PRIZE 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 Cash Option $5,750,000.00 $5,750,000.00* $7,125,000.00* Cash Option $390,000.00 $9,400,000.00*
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