Expected Value Theory
Sally has decided to get rich playing the lottery. She is trying to decide which lottery to invest her money in. she has collected the following information. Use Expected Value Theory to determine which lottery Sally should buy a ticket for. (6 marks)
|
Lottery |
Jackpot |
Probability of Winning |
|
|
|
|
|
A |
100,000 |
.0005 |
|
B |
1,500,000 |
.00003 |
|
C |
675,000 |
.00006 |
|
D |
1,100,000 |
.00004 |
|
E |
800,000 |
.00007 |