Answer: Expected profit is $15,580
Explanation:
Expected profit can be calculated by subtracting the total prize money's from the total revenue from the sales of the tickets.
[tex]Expected profit = Total revenue - Total prize money[/tex]
[tex]= 26,000 * $1 - (1,200 * $1 + 110 * $10 + 25 * $70 + 5 * $290 + 2 * $1,210 + 1 * $2,500)[/tex]
[tex]= $26,000 - ($1,200 + $1,100 + $1,750 + $1,450 + $2,420 + $2,500)[/tex]
[tex]= $26,000 - $10,420[/tex]
[tex]=$15,580[/tex]
Therefore, the expected profit of the lottery is $15,580.
