Question

You purchase a lottery ticket for $2 from a grocery store. There are a total of 100,000 tickets in circulation. The grand prize is $10,000. What are your expected winnings?
A. $0.10
B. $1.00
C. $2.00
D. $20

Answer 1

Okauy, i know its not C.

Answer 2

would my answer then be A?

Answer 3

Is the money split between everyone who bought a ticket?

Answer 4

no

Answer 5

so would my expexted winnings be $1 then?

Answer 6

@Jake-a-Shake

Answer 7

@dumbcow would my answer be B?

Answer 8

expected value is sum of amount won * probability of winning
\[EV = 9,998(\frac{1}{100,000}) -2(\frac{99,999}{100,000})\]

Answer 9

do i solve that?

Answer 10

yeah just put it in calculator

Answer 11

i dont have a calculator, gona use online one quick

Answer 12

uggh stupid thibng won't let me solve the problem, it saus incomplete imput, but i put it in their just like how u had it

Answer 13

those answers are off or i missed something....you would expect to lose around $1.90 per ticket

Answer 14

ya, unfortunetly i have to pick one of them:/

Answer 15

its not 2.00 thats forsure, because I got that answer wrong last time so its between A, B, nd D

Answer 16

sure there isnt a typo or anything?
im assuming only 1 ticket is picked for grand prize?

Answer 17

yep im sure no typo.

Answer 18

so if you were to pick one, which one you think it would be? 1.00?

Answer 19

i would not pick one because they are all wrong lol....you expect to lose , there are no expected winnings

Answer 20

go with A :)

Answer 21

yea?

Answer 22

Okay ill go with A then.

Answer 23

yes def A, i just saw my error i wasnt used to the wording, they dont want expected value
i over complicated it

expected winnings = amount won * probability of winning = 10,000*(1/100,000) = 1/10