Powerball is a multistate lottery. The following probability distribution represents the cash prizes of Powerball with their
Question:
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.
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds