Answer: The expected net winning for a single ticket = $0.8333
Step-by-step explanation:
The chance of winning a lottery game is 1/24000000
Suppose a $1 lottery ticket is bought in anticipation to win $4000000, the grand price for buying $1 is
4000000*1/24000000
= 1/6
= $0.1667
After paying for $1 for the ticket, the net winning is $0.1667 - $1
= -$0.8333
= -$0.8(to the nearest tenth)
This means that on the average, you will loose $0.8 for every ticket you buy. The lottery commission makes over $0.8 on every ticket sold.
The fair price of a lottery ticket is $0.17.