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

Here's how to calculate it:

1. Multiply each outcome by the chance of it happening.
- For the $0 win, it's 0 * 0.40 = $0.
- For the $100 win, it's 100 * 0.60 = $60.

2. Add up these values.
- $0 + $60 = $60.

So, the most you should be willing to pay to play this lottery is $60. This is because, on average, you can expect to win $60 each time you play.

Question

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

Here's how to calculate it:

1. Multiply each outcome by the chance of it happening. 
   - For the $0 win, it's 0 * 0.40 = $0.
   - For the $100 win, it's 100 * 0.60 = $60.

2. Add up these values. 
   - $0 + $60 = $60.

So, the most you should be willing to pay to play this lottery is $60. This is because, on average, you can expect to win $60 each time you play.

Knowee AI · Accepted Answer

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

Here's how to calculate it:

1. Multiply each outcome by the chance of it happening. 
   - For the $0 win, it's 0 * 0.40 = $0.
   - For the $100 win, it's 100 * 0.60 = $60.

2. Add up these values. 
   - $0 + $60 = $60.

So, the most you should be willing to pay to play this lottery is $60. This is because, on average, you can expect to win $60 each time you play.

40% ChanceWin 0 $60% ChanceWin 100 $ I am willing to pay at most $ to play the lottery.