A lottery that sells 150,000 tickets has the following prize structure: (1) first prize of ($50,000) (2)
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A lottery that sells 150,000 tickets has the following prize structure:
(1) first prize of \($50,000\)
(2) 5 second prizes of \($10,000\)
(3) 25 third prizes of \($1000\)
(4) 1000 fourth prizes of \($10\)
(a) Let Y be the winning amount of a randomly drawn lottery ticket. Describe the probability distribution of Y.
(b) Compute the mean or expected value of the ticket.
(c) If the ticket costs \($1.00\), is the purchase of the ticket worthwhile? Explain your answer.
(d) Compute the standard deviation of this distribution. Comment on the usefulness of the standard deviation as a measure of dispersion for this distribution.
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Related Book For
Statistical Methods
ISBN: 9780128230435
4th Edition
Authors: Donna L. Mohr, William J. Wilson, Rudolf J. Freund
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