A lottery offers five Php 1000, two Php 5,000, and one Php 10,000. One Thousand tickets are sold at Php 30 each. Find the expectation if a person buys one ticket.

Question

Mean and Variance of the given

1. myu=E[ x times P(x)]

Answer 1

for a thousand tickets, on average 5 tickets will win 1000 Php, 2 will win 5000 Php, 1 will win 10,000

winnings are 5,000+10,000+10,000 = 25,000 after spending 30,000 Php

the lottery raised 30,000 Php and will pay out 25,000, earning on average 5,000

expected winnings on one ticket is 25,000/30,000 =25/30 = 5/6 x 30 = 25 Php

but at a cost of 30 Php. Expected net "winnings" is a loss of 5 php per ticket purchased.

expected "winnings" on one ticket = 5 Php loss