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 - Page 237: 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.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.