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Old 12-06-2002, 02:59 PM
Homer Homer is offline
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Join Date: Sep 2002
Posts: 5,909
Default My answers

1) .6742 = 1*(1/11) + 2*(1/11) + 10*(1/56) + 25*(1/401) + 50*(1/401) + 100*(1/89144) + x*(1/520001)

.6742 = .6394529 + x/520001

x = (.6742 - .6394529) * 520001

x = $18068.53

2) 1/5.5 - 1/11 = 2/11 - 1/11 = 1/11 or 10:1

3) Hmmm....do you have to solve one first? Since we know the EV (given in 1) and the odds of getting a payout greater than zero (given in 2), can't we solve it based on that information, like this...

(4.5/5.5)*0 + (1/5.5)*x = .6742

x = $3.708

-- Homer
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