Suppose that ($1) lottery tickets have the following probabilities: 1 in 5 to win a free ticket

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Suppose that \($1\) lottery tickets have the following probabilities: 1 in 5 to win a free ticket (worth \($1)\), 1 in 100 to win \($5,\) 1 in 100,000 to win \($1,000\), and 1 in 10 million to win \($1\) million. What is the expected value of a lottery ticket? Discuss the implications. (Note: Winners do not get back the \($1\) they spend on the ticket.)

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Statistical Reasoning For Everyday Life

ISBN: 9780321904645

4th International Edition

Authors: Jeffrey Bennett, William L. Briggs, Mario F. Triola

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