Elementary Statistics (12th Edition)

Published by Pearson
ISBN 10: 0321836960
ISBN 13: 978-0-32183-696-0

Chapter 5 - Discrete Probability Distributions - Review - Review Exercises: 9

Answer

a)0.012. b)It is not worth playing.

Work Step by Step

a) The expected value: $1,000,000\cdot \frac{1}{90,000,000}+100,000\cdot \frac{1}{110,000,000}+25,000\cdot \frac{1}{110,000,000}+5,000\cdot \frac{1}{36,667,000}+2,500\cdot \frac{1}{27,500,000}=0.012$ b)The expected value is a lot less than the cost of a stamp, therefore it is not worth playing.
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