This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In 2006 the Texas Two Step lottery had hit an all-time high jackpot of 2.9 million. If the odds of ... (Read 116 times)

SAVANNAHHOOPER23

  • Hero Member
  • *****
  • Posts: 542
on: Jun 29, 2018
In 2006 the Texas Two Step lottery had hit an all-time high jackpot of 2.9 million. If the odds of winning the jackpot are 1.8 million to one and the cost of one lottery ticket is 1.00 is this a fair game? Explain.
 
  What will be an ideal response?

Question 2

What assumptions lead to the conclusion that final products are distributed efficiently among households?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bubulittle310@msn.cn

  • Sr. Member
  • ****
  • Posts: 281
Reply #1 on: Jun 29, 2018
Answer to Question 1

For it to be a fair game the expected value of the jackpot would have to be greater than the price of a ticket. The expected value is the payoff of 2.9 million times a probability of 1.8 million to one. This come to 1.69 which makes it a fair game considering the price of a ticket if 1.00

Answer to Question 2

People have different tastes and preferences, and they buy very different things in very different combinations. As long as everyone shops freely in the same markets, no redistribution of outputs among people will make them better off. Therefore the distribution of goods among households is efficient.


SAVANNAHHOOPER23

  • Member
  • Posts: 542
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

In some species, dominant females have more surviving offspring that mature earlier indicating an ad In some species, dominant females have more surviving offspring that mature earlier indicating an ad
H. erectus migrated out of Africa beginning about 1.8 million years ago and is first known from Geor H. erectus migrated out of Africa beginning about 1.8 million years ago and is first known from Geor
The remarkably complete skull of a 3-year-old Australopithecus girl; the fossil is 3.3 million ... The remarkably complete skull of a 3-year-old Australopithecus girl; the fossil is 3.3 million ...
Sample time management planning chart for a massage student. Sample time management planning chart for a massage student.
Per capita consumption of power is high in the developed world and highest in the United States Per capita consumption of power is high in the developed world and highest in the United States
High in the Andes, a scientist measures the stride of a carnivorous dinosaur High in the Andes, a scientist measures the stride of a carnivorous dinosaur
Video: Leukemia

For a complete list of videos, visit our video library