61. This table shows the prizes and respective probabilities for a lottery:
| Net prize | $1,000,000 | $1000 | $100 | $4 |
| Probability |
On average, how much money from a $1 ticket comes back to you in prizes?
61.
A net prize would be what you have after expenses (cost to play, taxes, other fees, etc.). In this exercise, prizes are given as “net” prizes, so it is understood that they include the cost to play the game. The probability of receiving a prize is as follows:
Thus, the probability of not receiving a prize is
We now have
Approximately $0.45 “comes back” in prizes on the $1 ticket.