Question: A grocery store gives its customers scratch-cards that may win them a prize if the secret code matches the winning numbers. Through this scratch-card program, customers can win various amounts with difference probabilities, as described in the table below:

1. What’s the probability of winning nothing?
2. What’s the mean amount won? Explain what this value means for the individual customer and for the grocery store.
3. What's the standard deviation of the amount won? Explain what this value means in terms of winnings.
4. Suppose the store manager can choose between the scratch-cards A that are described above,

and the new scratch cards B with probabilities and payoffs displayed in the table below:

Which scratch card program has the lowest average win, and therefore is less expensive for the store?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document