The question is incomplete. The complete question is :
A lottery offers one $800 prize, one $700 Prize, two $800 prizes, and four $100 prizes. One thousand tickets are sold at $5 each. Find the expectation if a person buys two tickets. Assume that the player's ticket is replaced after each draw and that the same ticket can win more than one prize. Round to two decimal places for currency problems.
The expected if a person buys two tickets is $__
Answer:
$ -1.52
Step-by-step explanation:
Given :
A lottery offers --
One $800 prize
One $700 prize
Two $800 prize
Four $100 prizes
Let X = net win
X P(X)
795 1/1000
695 1/1000
795 2/1000
95 4/1000
-5 996/1000
[tex]$E(X) = \sum X \ p(X)$[/tex]
[tex]$=795 \times \frac{1}{1000} + 695 \times \frac{1}{1000} + 795 \times \frac{2}{1000} + 95 \times \frac{4}{1000} + (-5) \times \frac{996}{1000}$[/tex]
= 0.795 + 0.695 + 1.59 + 0.38 - 4.98
= $ -1.52
