SOLUTION: An organization raises a money by selling 3000 raffle tickets. Three prizes are winning 1500, 500, 250.
1. What is a 'fair price' to pay for a ticket?
2. If the organization c
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Question 379376: An organization raises a money by selling 3000 raffle tickets. Three prizes are winning 1500, 500, 250.
1. What is a 'fair price' to pay for a ticket?
2. If the organization charges the fair price. What is the profit made?
Found 2 solutions by edjones, stanbon:
Answer by edjones(8007) (Show Source): You can put this solution on YOUR website!
1500+500+250=2250
1) 2250/3000=$0.75 Fair price for a ticket.
2) None.
.
Ed
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
An organization raises a money by selling 3000 raffle tickets. Three prizes are winning 1500, 500, 250.
1. What is a 'fair price' to pay for a ticket?
Let "x" be the price per ticket.
If the game is "fair", expected value is zero.
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Expected value = (1/3000)(1500 + 500 + 250)-(2997/3000)x = 0
2250/3000 = (2997/3000)x
x = 0.75
x = 75 cents
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You should pay 75 cents to play the game.
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2. If the organization charges the fair price. What is the profit made?
Nothing
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Cheers,
Stan H.
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