The expected value of the lottery can be calculated by multiplying each outcome by the probability of that outcome, then adding those values together.

Here's how you can calculate it:

1. Multiply the 10% chance of winning $10 by $10. This equals $1.
2. Multiply the 90% chance of winning $100 by $100. This equals $90.
3. Add these two values together. $1 + $90 = $91.

Therefore, the most you should be willing to pay to play this lottery is $91.

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The expected value of the lottery can be calculated by multiplying each outcome by the probability of that outcome, then adding those values together.

Here's how you can calculate it:

1. Multiply the 10% chance of winning $10 by $10. This equals $1.
2. Multiply the 90% chance of winning $100 by $100. This equals $90.
3. Add these two values together. $1 + $90 = $91.

Therefore, the most you should be willing to pay to play this lottery is $91.

Knowee AI · Accepted Answer

The expected value of the lottery can be calculated by multiplying each outcome by the probability of that outcome, then adding those values together.

Here's how you can calculate it:

1. Multiply the 10% chance of winning $10 by $10. This equals $1.
2. Multiply the 90% chance of winning $100 by $100. This equals $90.
3. Add these two values together. $1 + $90 = $91.

Therefore, the most you should be willing to pay to play this lottery is $91.

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

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