Question

What is the expected value of a lottery ticket which pays $10 million if the ticket contains the six winning numbers chosen from the set {1,2,3,...,50}?

Answer 1

Expected Value = (Winning Amount) x (Probability of Winning)

Explanation:

Winning Amount = $10,000,000

Assuming only one winning ticket and the "order" of the numbers on the ticket does not matter :

P(Win) =`=1/((50!)/(6!44!))=1/(15,890,700)`

E(Win) = 10,000,000 x `1/(15,890,700)= $0.63`

Hope that helped