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
Economics
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Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which of the following bundles are in Max's opportunity set?
A) a, b, c B) b, d, e C) a, b, d D) None of the above.
Economics
When economists describe preferences, they often use the concept of
a. markets. b. income. c. utility. d. prices.
Economics