Assume you buy a lottery ticket, which has the odds of one winner for every 1,000 tickets sold; The ticket costs $10 and if you win, you receive $2,500. What is the expected return from buying this lottery ticket? What does the expected return % number mean?© BrainMass Inc. brainmass.com March 21, 2019, 8:56 pm ad1c9bdddf
You have 0.1% chance of winning 2500, and 99.9% chance of getting nothing, and you pay $10 for the ...
Expected Return on Lotteries