Tennessee just instituted a state lottery the initial

Assignment Help Econometrics

Reference no: EM13377996

Tennessee just instituted a state lottery. The initial jackpot is $100,000. If the first week yields no winners, the next week's jackpot goes up, depending on the numbers of previous players who placed the lottery bets. The probability of winning is one in a million (1-10 -6). What must the jackpot be before the expected payoff is worth your $1 Bet? Assume that the state takes 60% of the jackpot in taxes, that no one else is a winner, and you are risk-neutral (i.e. you value the lottery at its expected value).

Reference no: EM13377996

Questions Cloud

Sales at morton bakery over the past 10 weeks are given in : sales at morton bakery over the past 10 weeks are given in the table belowweekweek tnbspnbspnbspnbspnbspnbspnbspnbsp

Over a period of years a toothpaste has received a mean : over a period of years a toothpaste has received a mean rating of 5.9 on a 7-point scale for overall customer

New horizons airlines wants to forecast the mean number of : new horizons airlines wants to forecast the mean number of unoccupied seats per flight to germany next year. to

The weights of a population of parts made by a certain : the weights of a population of parts made by a certain machine are normally distributed with a mean of ten pounds and a

Tennessee just instituted a state lottery the initial : tennessee just instituted a state lottery. the initial jackpot is 100000. if the first week yields no winners the

Youve recently learned that the company where you work is : youve recently learned that the company where you work is being sold for 380000. the companys income statement

Use the table below to answer the following questions : use the table below to answer the following questions please show all

Consider the following situation in the country as labor : consider the following situation in the country as labor market if the wage is w 700 workers will provide l 10 units

According to the cruise ship examplea what are the real and : according to the cruise ship examplea what are the real and what are the nominal objectives goals of macroeconomic

User Account

All Pages