Asked by Twg

Sam bought 1 of 250 tickets selling for $2 in a game with a grand prize of $400. Was $2 a fair price to pay for a ticket to play this game?

Answers

Answered by Reiny
depends what you mean by "fair price"
every lottery game or gambling patters is designed to be "unfair" for the player, how else do you think Las Vegas could exist?

expected value = (1/250(400) = 1.6

So he paid too much.

OR look at it this way:
the organizers took in 250x$2.00 = 500
but only paid out 400
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