QUESTION

# Show work! Suppose that a new state lottery game is developed with the following prizes and the number of tickets for each dollar prize:

Show work!

Suppose that a new state lottery game is developed with the following prizes and the number of tickets for each dollar prize:

Prize             of Tickets

\$      0             88,120

\$      1             11,000

\$      5                  500

\$    10                  200

\$    20                  100

\$   100                    50

\$  500                    20

\$ 1000                    10

The cost of a ticket is \$1 and there are a total of 100,000 tickets available. Answer each of the following questions:

Question 1:     What is the probability that an individual purchasing one ticket will win a prize of \$1,000?

Question 2:     What is the probability that an individual purchasing one ticket will win \$5 or more?

Question 3:     The actual return for purchasing one ticket must take into account the \$1 spent to purchase the ticket. Keeping this in mind, what is the                                            probability that purchasing one ticket will yield a return of \$0?

Question 4:     What is the expected return when an individual purchases one lottery ticket in this game?