1. Two neighboring states have similar lotteries. Each lottery costs $1.00 to en
ID: 3317121 • Letter: 1
Question
1. Two neighboring states have similar lotteries. Each lottery costs $1.00 to enter The probability model for the amount you win in State A's lottery is 50 500 Probability 0.995 0.004 0.001 potoan 0,000 0.00 The probability model for the amount you win in State B's lottery is 500 0.996 0.002 0.0015 0.0005 Probability (a) Find the expected winnings in State A's lottery (b) Find the expected winnings in State B's lottery (c) Given a choice, which state lottery would you play? Justify your answer. 2. A box contains ten $1 bills, five $2 bills, three S5 bills, one S10 bill, and one $100 bill. You get to select one bill from the box and note its value. (a) Identify the random variable. X- (b) Construct a probability distribution for this data. (c) Find the expected value. (d) If a person is charged $10 to select one bill from the box, is the game fair? Explain why or why not.Explanation / Answer
1) a) Expected winnings in state A's lottery = 0 + 50x0.004 + 100x0.001 = $0.3
b) Expected winings in state B's lottery = 0 + 50x0.002+ 100x0.0015 + 500x0.0005
= $0.5
c) Lottery of state B. The expected winning is high for lottery B and hence, given an option, I would play state B's lottery
P.S - Please post different questions separately
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