A lottery is to be conducted in which 10,000 tickets are to be sold for $1 each. Six winning tickets are to be randomly selected: one grand prize winner of $5000, one second prize winner of $2000, one third prize winner of $1000 and three other winners of $500 each.
Q16. Let X represent the net winnings of a person who purchases one ticket in the lottery. Obtain the probability distribution of X and compute P(X=-1) a) 0.0003 b) 0.0001 c) 1.00 d) 0.9994
Q17. Compute the expected net winnings from buying a ticket in the lottery. a) 0.05 b) 1.05 c) -0.05 d) -1.05