Question: Powerball is a multistate lottery The following probability distribution represents

Powerball is a multistate lottery. The following probability distribution represents the cash prizes of Powerball with their corresponding probabilities.
x (cash prize, $) ........... P(x)
Grand prize ........... 0.00000000684
200,000 ........... 0.00000028
10,000 ............. 0.000001711
100 ............. 0.000153996
7 ............. 0.004778961
4 ............. 0.007881463
3 ............. 0.01450116
0 ............. 0.9726824222
(a) If the grand prize is $15,000,000, find and interpret the expected cash prize. If a ticket costs $1, what is your expected profit from one ticket?
(b) To the nearest million, how much should the grand prize be so that you can expect a profit? Assume nobody else wins so that you do not have to share the grand prize.
(c) Does the size of the grand prize affect your chance of winning? Explain.

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  • CreatedApril 27, 2015
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