Asked by Tina

A certain sweepstakes ticket has four categories of prizes with the following probabilities of being won:


Prize

Probability


$100,000
1/500,000


$50,000

1/250,000


$20,000

1/200,000


$10,000

1/100,000

What is the expected value of buying these sweepstakes tickets?
Select one:
a. $.60
b. $5.00
c. $.50
d. $6.00

Answers

Answered by Reiny
(1/500,000)(100000) + (1/250000)(50000) + (1/200000)(20000) + (1/100000)(10000)
= .60
so $0.60
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