Try anothe er similar question, reattempt last question below, or select another

Question

Try anothe er similar question, reattempt last question below, or select another question. Robert bought a $5 lottery ticket such that 1 in 100 would win1 What is the expected value of a lottery ticket in dollars? Preview Does Robert expect to earn a profit if he buys 100 tickets? n) By how much? r1) Preview on Show Answer 4.78 Show Answer Lose Show Answer 478 Points available on this attempt: 0.3 of original 1 This is attempt 5 of 6 Score on last attempo:1o, 0.33. 0. Score in gradebook co, 0.33, o·Out of: (0.33, 0.33, 0.34) Submit

Explanation / Answer

Y = payoff
E(Y) = 10 * 1/100 + 1/1000 * 100 + 1/50 *1 = 0.22
X = profit
E(X) = 0.22 - 5
= -4.78

since E(X) < 0
hence lose .

by how much
= 100 *4.78
= 478

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