average lottery winnings

average lottery winnings

Probability of distribution?

Need help with this issue one step. thanks in advance. New Jersey has a selection of "3" game where you pick one of the 1000 3-Digit numbers between 000 and 999, receiving $ 275 for a $ 1 winning bet and nothing otherwise. A. construct the distribution probability of the random variable X = earnings b. find the average of the probability distribution c. based on the average in (b) and the cost of $ 1 to play the game on average, how much can you expect to lose every time you play the lottery?

a) p (X = $ 0) = 0.999 p (x = $ 275) = 0.001 b) expected (average) = Win ($ 0 x 0.999) + ($ 275 x 0.001) = $ 0275 c) The average loss = average win – set = $ 0.275 – $ 1 = $ 0.725 hope this helps