30. Connecticut Lottery In the Cash Five Lottery in Connecticut, a player pays $

Question

30. Connecticut Lottery In the Cash Five Lottery in Connecticut, a player pays $1 for a single ticket with five numbers. Five balls numbered 1 through 35 are randomly chosen from a bin without replacement. If all five numbers on a player's ticket match the five chosen, the player wins $100,000. The probability of this occurring isIf four numbers match, 324,632 the player wins $300. This occurs with probability 2164 If three numbers match, the player wins $10. This occurs with probability T.Compute and interpret the expected value of the game fronm 75 the player's point of view.

Explanation / Answer

Expected value of the game for the player = Sum of (winning amount x probability of winning) - cost of the game

= (100,000 x 1/324,632 + 300 x 1/2164 + 10 x 1/75) - 1

= 0.58 - 1

= - $0.42

(The negative sign indicates loss)

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