In 2006 the Texas Two Step lottery had hit an all-time high jackpot of $2.9 million. If the odds of winning the jackpot are 1.8 million to one and the cost of one lottery ticket is $1.00 is this a fair game? Explain
What will be an ideal response?
For it to be a fair game the expected value of the jackpot would have to be greater than the price of a ticket. The expected value is the payoff of $2.9 million times a probability of 1.8 million to one. This come to $1.69 which makes it a fair game considering the price of a ticket if $1.00
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One of the main sources of comparative advantage is internal economies
Indicate whether the statement is true or false
Which of the following is always TRUE of rational behavior?
A) It always entails pursuing one's own best interest. B) It always yields the best possible outcome for all individuals. C) It never involves the pursuit of greedy self-interest. D) It never involves taking into account the interests of others.
Deficit financing has been part of U.S. history from the very beginning. The Continental Congress put the country into debt in order to continue its fight for independence from Great Britain. As is done today, Congress issued bonds
What will be an ideal response?
Under what circumstances does purchasing-power parity explain how exchange rates are determined, and why is it not completely accurate?