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The Lottery Commission Has Designed a New Instant Lottery Game XP[X]00.95100.0491000.001\begin{array} { | c | c | } \hline X & P [ X ] \\\hline 0 & 0.95 \\\hline 10 & 0.049 \\\hline 100 & 0.001 \\\hline\end{array}

Question 26

Multiple Choice

The lottery commission has designed a new instant lottery game. Players pay $1.00 to scratch a ticket, where the prize won, X, (measured in $) has the following discrete probability distribution : XP[X]00.95100.0491000.001\begin{array} { | c | c | } \hline X & P [ X ] \\\hline 0 & 0.95 \\\hline 10 & 0.049 \\\hline 100 & 0.001 \\\hline\end{array} Which of the following best describes the expected value of X ?


A) In the long run, the average prize won per $1 played is $0.
B) In the long run, the average prize won per $1 played is $0.41.
C) In the long run, the average prize won per $1 played is $0.59.
D) None of these choices are correct

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