Robert bought a $3 lottery ticket such that 1 in 100 would win $9, 1 in 1000 would win $120, and 1 in 50 million would win 1 million. What is the expected value of a lottery ticket in dollars? Does Robert expect to earn a profit if he buys 100 tickets?

Robert bought a $3 lottery ticket such that 1 in 100 would win $9, 1 in 1000 would win $120, and 1 in 50 million would win 1 million. What is the expected value of a lottery ticket in dollars? Does Robert expect to earn a profit if he buys 100 tickets?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question

Robert bought a $3 lottery ticket such that 1 in 100 would win $9, 1 in 1000 would win $120, and 1 in 50 million would win 1 million. What is the expected value of a lottery ticket in dollars?

Does Robert expect to earn a profit if he buys 100 tickets?

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