different and the order of the numbers does not matter.

a. What is the probability of winning the jackpot?

b. What is the expected value of this game?

c. How large does the jackpot have to be for it to be a fair game?

Answers:

a. 1/575,757

b. E(X) = $40,000(1/575,757) + 0(575,756/575,757) = 0.06947

Now, my professor subtracted the $1 it cost to play the lottery game, so E(X) = 0.06947 - $1 = - $ 0.9305

c. This one is confusing to me. So the expected value of my $1 bet is (0.06497 or -0.9305)?

then what is the fair value? My professor said that the fair value is $0 because the expected value is $0. Why is it not $1?

AND how large does the jackpot have to be for it to be a fair game? He wrote down $575,757

isn't this not fair? because I put in $1 and expect a return that is less

Thanks!