SOLUTION: my mom is trying to help me with this problem, but we are not good at it. Can you continue to help us please? Here we go. One thousand raffle tickets are sold for a firs prize $30

Question 129354This question is from textbook fundamentals of maths
: my mom is trying to help me with this problem, but we are not good at it. Can you continue to help us please? Here we go.
One thousand raffle tickets are sold for a firs prize $300. A second prize of $150. And a third prize of $50.00 dollars.What is a fair price to pay foe a raffle ticket? if Mary brought a raffle ticket for $1.00 dollar. What can you conclude about the cost of entering this raffle?. my mom says that i must do it this way.
1000 times $300.00 followed by $150.00 and so on. i know this is not right. Can you help us please? This question is from textbook fundamentals of maths

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
One thousand raffle tickets are sold for a first prize $300.
A second prize of $150.
And a third prize of $50.00 dollars.

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Let your random variable be "x = gain"
Values of the random variable are:
300...................150................50.............-1.......
Corresponding probabilities are:
1/1000................1/1000.............1/1000.........999/1000
Expected "gain" value = (1/1000)(300+150+50)-(999/1000) = -499/1000= -49.9 cents
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What is a fair price to pay for a raffle ticket?
About 50 cents
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if Mary brought a raffle ticket for $1.00 dollar.
What can you conclude about the cost of entering this raffle?.
50 cents covers the cost of the prises; the rest benefits the orgainizer.
Mary can expect to lose 50 cents and every dollar she spends.
--------------------
Cheers,
Stan H.
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