00:01
All right, in this video, we are looking at lottery tickets that are being purchased for $1 each.
00:07
And there are 5 ,000 of them.
00:09
And then one ticket is going to win $1 ,000.
00:12
Two tickets will win $500 and $10 will win $100 each.
00:16
Which if you think about it, that means they're really only winning $99 because they had to pay a dollar to buy a ticket.
00:21
And then the same thing applies for the $500 and the $1 ,000 ticket.
00:25
And what we're going to do is we're going to calculate, we're going to put together the probability distribution.
00:30
With all possible outcomes and then the probability of those outcomes the first outcome is that you lose all right so negative one the second outcome is that you and i'm just going to go in least the greatest order you could win one of the $100 tickets i mean you profit 99 you could profit 499 you could profit 999 all right and there are 10 tickets that win $99.
01:06
There are two tickets that win the 500, and then one ticket that wins the grand prize.
01:19
And so that means overall there's a thousand winners...