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A Lottery Has One $2000 Prize, Two $1000 Prizes, And Ten $500 Prizes. Two Thousand Tickets Are Sold At $5 Each. Find The Expectation If A Person Buys Two Tickets?

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Oddman Profile
Oddman answered
The expected payoff is
(2/2000)($2000 + 2*$1000 + 10*$500)
= (1/1000)*$9000
= $9

$10 spent for tickets yields a $9 expected payoff.

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