Here is the step-by-step procedure to calculate this result: 1. Identify all net payouts
P(nothing)=1−(0.01+0.05+0.10+0.20)=1−0.36=0.64cap P open paren nothing close paren equals 1 minus open paren 0.01 plus 0.05 plus 0.10 plus 0.20 close paren equals 1 minus 0.36 equals 0.64 3. Apply the expected value formula
E(X)=0.95+0.75+0.50+0−3.20cap E open paren cap X close paren equals 0.95 plus 0.75 plus 0.50 plus 0 minus 3.20 fifa-22-pc-game-free-download
First, find the net profit or loss for every possible ticket outcome by subtracting the initial cost of the ticket from the prize amounts: Winning nothing: 2. Determine all outcome probabilities
Multiply each net payout by its corresponding probability and add the products together. The expected value formula is Here is the step-by-step procedure to calculate this
E(X)=(95×0.01)+(15×0.05)+(5×0.10)+(0×0.20)+(-5×0.64)cap E open paren cap X close paren equals open paren 95 cross 0.01 close paren plus open paren 15 cross 0.05 close paren plus open paren 5 cross 0.10 close paren plus open paren 0 cross 0.20 close paren plus open paren negative 5 cross 0.64 close paren
To calculate the expected value of your profit or loss from this scratch-off ticket, we need to multiply the net value of each possible outcome by its probability and sum them all together. Determine all outcome probabilities Multiply each net payout
The expected value of your profit or loss for a single scratch-off ticket is exactly