In Exercise 15. find the expectation if a person buys two

Chapter 5, Problem 16E

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QUESTION:

Problem 16E

In Exercise 15. find the expectation if a person buys two tickets. Assume that the player’s ticket is replaced after each draw and that the same ticket can win more than one prize.

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QUESTION:

Problem 16E

In Exercise 15. find the expectation if a person buys two tickets. Assume that the player’s ticket is replaced after each draw and that the same ticket can win more than one prize.

ANSWER:

Solution:

Step 1 of 2:

From the given problem, the lottery offers we have:

1). One $1000 prize,

2). One $500 prize, and

3). Five $100 prizes.

One thousand tickets are sold at $3 each.

We have to find the expectation if a person buys two tickets.


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