Question: A, B, C, D Expected values A. In lottery game, a player pick six numbers from 1 to 20. If the player matches all six
A, B, C, D Expected values A. In lottery game, a player pick six numbers from 1 to 20. If the player matches all six numbers they win $30,000 . Otherwise they lose one dollar. What is the expected value of the game? B. based on historical data an insurance company estimate for a particular customer has a 2.7% likelihood of having an accident in the next year, with the average insurance payout being 3200. If the company charges this customer annual premium of $320 what is the companies expected value of the insurance policy? C. A company then estimates that 0.6 of the products will fall after the original warranty but within two years of the purchase with a replacement cost of $300. If they offer a two year extended warranty for $35, what is the companies expected value of each warranty sold? D. Robert bought a $45 lottery ticket such that one and 100 would win $9 dollars, one and 100 would win $120 and one and 50 would win 1 million . what is the expected value of a lottery ticket in dollars
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