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90% ChanceWin of 0 $10% ChanceWin of 100 $ I am willing to pay at most                                              $ to play the lottery.

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90% ChanceWin of 0 $10% ChanceWin of 100 $ I am willing to pay at most                                              $ to play the lottery.
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Solution 1

The amount you should be willing to pay to play the lottery can be calculated using the concept of Expected Value in probability.

The Expected Value (EV) is calculated as follows:

EV = (Probability of Outcome 1 * Value of Outcome 1) + (Probability of Outcome 2 * Value of Outcome 2) + ... + (Proba Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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