SOLUTION: The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $8 each and will sell 900 tickets. There is one $3,000 grand prize, two $400

Question 1142974: The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $8 each and will sell 900 tickets. There is one $3,000 grand prize, two $400 second prizes, and ten $40 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent.
Found 3 solutions by ikleyn, solver91311, greenestamps:
Answer by ikleyn(52781)   (Show Source): You can put this solution on YOUR website!
.

Expected value for win is dollars = dollars = = = dollars = $4.67. Expected value for the profit is $4.67 - $8 = $3.33. ANSWER

Answer by solver91311(24713)   (Show Source): You can put this solution on YOUR website!

1 ticket has a net value of $2,992, 2 tickets have a net value of $392, 10 tickets have a net value of $32, and 887 tickets have a net value of -$8.

So, 2992 plus 2 times 392 plus 10 times 32 plus 887 times -8. Then divide the whole thing by 900.

John

My calculator said it, I believe it, that settles it

Answer by greenestamps(13200)   (Show Source): You can put this solution on YOUR website!

The total cost of the tickets is 900($8) = $7200.

The total value of the prizes is $3000 + 2($400) + 10($40) = $4200.

The expected value of a ticket is the average profit of a ticket; that is

The expected value of a ticket, to the nearest cent, is -$3.33.
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