Question: Seven thousand lottery tickets are sold for $5 each. One ticket will win $2,000, two tickets will win $750 each, and five tickets will win $100 each. Let X denote the net gain from the purchase of a randomly selected ticket.
a. Construct the probability distribution of X.
b. Compute the expected value E (X) of X. Interpret its meaning.
c. Compute the standard deviation σ of X.