Question
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Score: 0 of 4 points
You buy a lottery ticket to a lottery that costs per ticket. There are only 300 tickets available to be sold in this lottery. In this lottery there are one prize(s), two prizes, and fifteen
prizes. Find your expected gain or loss. (Round to 2 decimal places if needed.)
Expected gain or loss Enter your answer
Note: Represent a gain with a positive answer and a loss with a negative answer.

Ask by Macdonald Paul. in the United States
Mar 15,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

Your expected loss is approximately $11.41.

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Answered by UpStudy AI and reviewed by a Professional Tutor

The Deep Dive

To calculate the expected gain or loss, we first need to determine the total value of the prizes in the lottery as well as the total number of tickets sold.
  1. Total Prizes:
    • One $500 prize
    • Two $100 prizes:
    • Fifteen $25 prizes:
    Adding these together:
  2. Total Tickets Sold:
    There are 300 tickets sold at $15 each.
  3. Calculating the Expected Value:
    The expected value per ticket can be calculated by dividing the total value of prizes by the number of tickets, then subtracting the ticket cost.
    Calculating the expected value:
    • First, calculate .
    • Now, subtract the cost of the ticket:
Thus, your expected gain or loss is approximately:
So, you can expect a loss of about $11.42.

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