Lottery Expected Value

Suppose you buy a ticket for $6 out of a lottery of 1000 tickets where the prize for the one winning ticket is $800. What is the expected value (after paying for the ticket)?

• $800

• -$6.50

• -$6

• -$5.20

If the expected value is negative, are you expected to win?

• yes

• no

A student group sells 500 raffle tickets for $2 each. At the drawing the top prize will be a gift certificate for $100. Second prize will be a $50 gift card and there will be five 3rd prizes, each a $20 gift card. Do you expect to win or lose (on average)? How much?

• lose an average of $5.50

• lose an average of $1.50

• win an average of $2.00

• lose an average of $10.00

If the expected value is positive, are you expected to win?

• yes

• no

In a state lottery, a single digit is drawn from each of four containers. Each container has 10 balls numbered 0 through 9. To play, you choose a 4-digit number and pay $1. If your number is drawn, you win $5000. If your number is not drawn, you lose your dollar. What is the expected value for this game?

• You are expected to lose 1 dollar each time you play.

• You are expected to lose 50 cents each time you play.

• You are expected to win 1 dollar each time you play.

• You are expected to lose 75 cents each time you play.

A raffle is held by the MTHS ASB to draw for a $1000 plasma television. Two thousand tickets are sold at $1.00 each. Find the expected value for one ticket.

• Lose $0.50

• Win $0.50

• Lose $5

• Win $5

Expected value is

• an average.

• a predicted value of a game.

• the sum of the values multiplied by their probabilities.

• all of the above.

A coin is flipped 3 times. If you get tails once you get $5, tails twice you get $15, and tails on all three flips you get $40. What is the expected amount of money you will get?

• $12.50

• $5

• $7.50

• $10

Given the probability model in the table below, what is the expected value of the random variable?
  X        50          20        5
P(X)     0.1         0.3      0.6

• 14

• 4.67

• 5

• 7.5

What is the expected value in a lottery game?

• The average amount of money a player can expect to win or lose in a single ticket

• The probability of winning the lottery

• The number of balls in a lottery machine

• The value of a lottery ticket