Reader's Digest ran a sweepstakes in which prizes were listed along with the chances of winning: $1,000,000
Question:
a. Assuming that there is no cost to enter the sweepstakes, find the expected value of the amount won for one entry.
b. Find the expected value if the cost of entering this sweepstakes is the cost of a postage stamp. Is it worth entering this contest?
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Related Book For
Statistical Reasoning for Everyday Life
ISBN: 978-0321817624
4th edition
Authors: Jeff Bennett, Bill Briggs, Mario F. Triola
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