A state offers two lottery games, WinOne and PlayBall. Both games cost $2 per ticket. In WinOne, the player picks a single letter from A to J and a single digit from 0 to 9. If both the letter and the digit match the letter and the digit picked on that day, the player wins $150. In PlayBall, the player picks a single letter from A to T and a single digit from 0 to 9. If both the letter and the digit match the letter and the digit picked on that day, the player wins $280. If the prize for WinOne were increased to $200 for matching both the letter and the digit, what would the expected value be? -$0.80 -$0.65 $0 $0.80
Accepted Solution
A:
In this question, both tickets cost 2$ per ticket. The answer to this question would be: $0
In WinOne scenario, you need to match a ticket that has to pick from A-J(10 possibilities) and 0-9 (10 possibilities). The chance to win would be: 1/10* 1/10= 1/100
The expected value must be: E= chance to win * win amount - ticket price E= 1//100*$200 - $2= $2-$2= 0