00:01
So we have a probability distribution, and i'll let x be the net earnings on the game and the probability of each of those.
00:09
And so it costs a dollar to play, and the prizes were 100, so we could net a 99, 50 would net you 49, 25 would net you 24, 10 would net you 9, and then the most common thing to happen will be you'll just lose a book.
00:28
And so this is a 1 out of 1 ,000, as is this probability, as is this probability, as is this probability, and then this one is 0 .996 out of 1 ,000.
00:41
And so let's find the expected value for just purchasing one ticket.
00:47
And if we multiply the 0 .99 times the 0 .001, and do that for all the calculations all the way up to, negative 1 times .996.
01:03
That gives us an expected value, and let me quick do that calculation for you...