The expected value of the lottery can be calculated using the formula:

Expected Value = (Probability of Winning * Amount Won per Win) + (Probability of Losing * Amount Lost per Loss)

In this case, the probability of winning is 90% or 0.9 and the amount won per win is $100. The probability of losing is 10% or 0.1 and the amount lost per loss is $0 (since you don't lose any money if you don't win).

So, the expected value of the lottery is:

Expected Value = (0.9 * $100) + (0.1 * $0) = $90

This means that, on average, you can expect to win $90 every time you play this lottery. Therefore, you should be willing to pay at most $90 to play this lottery. If you pay more than this, you would be losing money in the long run.

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The expected value of the lottery can be calculated using the formula:

Expected Value = (Probability of Winning * Amount Won per Win) + (Probability of Losing * Amount Lost per Loss)

In this case, the probability of winning is 90% or 0.9 and the amount won per win is $100. The probability of losing is 10% or 0.1 and the amount lost per loss is $0 (since you don't lose any money if you don't win).

So, the expected value of the lottery is:

Expected Value = (0.9 * $100) + (0.1 * $0) = $90

This means that, on average, you can expect to win $90 every time you play this lottery. Therefore, you should be willing to pay at most $90 to play this lottery. If you pay more than this, you would be losing money in the long run.

Knowee AI · Accepted Answer

The expected value of the lottery can be calculated using the formula:

Expected Value = (Probability of Winning * Amount Won per Win) + (Probability of Losing * Amount Lost per Loss)

In this case, the probability of winning is 90% or 0.9 and the amount won per win is $100. The probability of losing is 10% or 0.1 and the amount lost per loss is $0 (since you don't lose any money if you don't win).

So, the expected value of the lottery is:

Expected Value = (0.9 * $100) + (0.1 * $0) = $90

This means that, on average, you can expect to win $90 every time you play this lottery. Therefore, you should be willing to pay at most $90 to play this lottery. If you pay more than this, you would be losing money in the long run.

10% ChanceWin 0 $90% ChanceWin 100 $ I am willing to pay at most $ to play the lottery.

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