Consider a lottery game in which you buy a ticket and you may or may not get a money prize in return. Suppose that for X = net amount won or lost in a lottery game, the expected value is E( X ) = -$0.50.

Which of the following statements is the most correct interpretation of this expected value?

Question

Consider a lottery game in which you buy a ticket and you may or may not get a money prize in return.  Suppose that for X = net amount won or lost in a lottery game, the expected value is E( X ) = -$0.50.  
 
 Which of the following statements is the most correct interpretation of this expected value?

Answer

A mistake must have been made because it's impossible for an expected value to be negative.

Answer

Over a large number of plays the average outcome for plays is a net loss of 50 cents.

Answer

The most likely outcome of a single play is a net loss of 50 cents.

Answer

A player will have a net loss of 50 cents every single time he or she plays this lottery game.

Answer

This the minmum amount the player can lose in the long run.

Crowdly

Consider a lottery game in which you buy a ticket and you may or may not get a m...

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