Chapter 6 Review Homework 

6.  For a multistate​ lottery, the following probability distribution represents the cash prizes of the lottery with their corresponding probabilities. Complete parts​ (a) through​ (c) below.

(a) If the grand prize is ​$14,000, 000, find and interpret the expected cash prize. If a ticket costs​ $1, what is your expected profit from one​ ticket?

What is the correct interpretation of the expected cash​ prize?

The expected profit from one​ $1 ticket is

(b) To the nearest​ million, how much should the grand prize be so that you can expect a​ profit?

(c) Does the size of the grand prize affect your chance of​ winning? Explain.

1. ​No, because the expected profit is always​ $0 no matter what the grand prize is.
2. ​Yes, because your expected profit increases as the grand prize increases.
3. No, because your chance of winning is determined by the properties of the​ lottery, not the payouts.