Question

A magazine subscription service is having a contest in which the prize is 80,000. if the company receives 1 million entries, what is the expectation of the contest?

$____

Answer 1

Expectation of the contest = $0.08

Explanation:

Amount of the contest prize = $80000

Total entries received = 1 million

Probability of winning the contest =
`(1)/(1000000)`

Expectation of the contest will be determined by the formula

P = (winning amount) × (probability to win the contest)

=
`80000* (1)/(1000000)`

= $0.08

Therefore, the expectation of the contest will be $0.08.