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The New York State lotto you pay $3 and can bet that the sum of the numbers that come up is 13. The probability of winning is .085 and if you win you win seven dollars, which is a profit of four dollars if you lose you lose three dollars, what is the expected value of profit

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itzamirv2

To calculate the expected value of profit, we'll use the formula:

Expected Value = Probability of Winning × Profit if Win - Probability of Losing × Loss if Lose

Given:

- Probability of winning = 0.085

- Profit if win = $7

- Probability of losing = 1 - 0.085 = 0.915

- Loss if lose = $3

Now, let's plug these values into the formula:

Expected Value = (0.085 × $7) - (0.915 × $3)

Expected Value = $0.595 - $2.745

Expected Value = -$2.15

So, the expected value of profit is -$2.15. This means that, on average, you can expect to lose $2.15 each time you play the New York State lotto under these conditions.