Answer:
Expectation of the contest = $0.08
Step-by-step explanation:
Amount of the contest prize = $80000
Total entries received = 1 million
Probability of winning the contest = [tex]\frac{1}{1000000}[/tex]
Expectation of the contest will be determined by the formula
P = (winning amount) × (probability to win the contest)
= [tex]80000\times \frac{1}{1000000}[/tex]
= $0.08
Therefore, the expectation of the contest will be $0.08.
