What is the expected value of a lottery ticket which

cyrsvab

cyrsvab

Answered question

2022-02-12

What is the expected value of a lottery ticket which pays $10 million if the ticket contains the six winning numbers chosen from the set {1,2,3,...,50}?

Answer & Explanation

s3au1d8wh

s3au1d8wh

Beginner2022-02-13Added 11 answers

Expected Value =(Winning Amount)×(Probability of Winning)
Explanation:
Winning Amount =$10,000,000
Assuming only one winning ticket and the "order" of the numbers on the ticket does not matter:
P(Win)=150!6!44!=115,890,700
E(Win)=10,000,000×115,890,700=$0.63

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